VIDEOCON PROPERTIES LTD. vs BHALCHANDRA LABORATORIES .

The Supreme Court addressed the contractual obligations under an agreement dated 13.5.1994 between builders (appellants) and a partnership firm (respondents). The Court held that under Clause 2.3, if the vendors fail to fulfill their obligations, the purchasers are entitled to terminate the agreement and demand the return of the earnest money with interest at 21% per annum. The Court ruled in favor of the appellants, affirming their right to claim interest on the earnest money from the date of payment until its return, thus reinforcing the principle of specific performance and the enforceability of contractual terms.