Whether plaintiff is entitled to get refund of earnest amount if suit for specific performance is dismissed?

In view of the fact that the suit filed by the appellant for specific performance had been dismissed on the ground that the respondents did not have title, the respondents must repay the amount received by them from the appellant. The amount shall be returned within two months from today with simple interest @9%.
Non-Reportable

Supreme Court of India

Basavantappa vs Irappa(D) By Lrs. & Ors on 11 February, 2016

Bench: Anil R. Dave, Adarsh Kumar Goel

Citation:(2015) 16 SCC124

2. The only issue is with regard to payment of the amount which had been paid by the appellant to the respondents at the time of entering into an agreement to purchase the property in question.

3. In view of the fact that the suit filed by the appellant for specific performance had been dismissed on the ground that the respondents did not have title, the respondents must repay the amount received by them from the appellant. The amount shall be returned within two months from today with simple interest @9%.

4. Intimation of this order be served upon the respondents.

5. The appeal is allowed. Pending application, if any, stands disposed of. There shall be no order as to costs.

..............J.

[ANIL R. DAVE] ..............J.

[ADARSH KUMAR GOEL] New Delhi;

11th December, 2015.

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