V. LAKSHMANAN vs B.R. MANGALAGIRI & ORS.

The Supreme Court upheld the High Court's dismissal of the appellant's suit for recovery of Rs.50,000, which was labeled as advance in the sale agreement. The Court ruled that the appellant's failure to obtain necessary permissions from the Gram Panchayat constituted a breach of the agreement, thus justifying the forfeiture of the amount. The Court clarified that the label 'advance' does not alter the nature of the payment as earnest money, which can be forfeited without proof of damages if the buyer defaults.