GIAN CHAND vs GOPALA & ORS.

The Supreme Court held that the appellant is entitled to a refund of the earnest money paid under the agreement to purchase land, as the contract was frustrated due to the prior publication of a notification under Section 4(1) of the Land Acquisition Act, 1894. The Court clarified that the respondent was obligated to return the earnest money without interest as per the terms of the contract, and the appellant's readiness to perform the contract was irrelevant given the legal impediment created by the acquisition notification. The Court upheld the trial court's decision to grant the refund, reversing the appellate court's dismissal of the suit.