Huda And Anr vs Dr. Babeswar Kanhar And Anr

The Supreme Court held that under Section 12 of the Consumer Protection Act, 1986, the forfeiture of earnest money by HUDA was unjust as the respondent communicated his non-acceptance of the plot within a reasonable timeframe, despite postal delays and office closures. The Court emphasized that a party should not suffer due to circumstances beyond their control, applying principles from the General Clauses Act, 1897. The Court upheld the lower forums' orders for refund of the deposit with interest, affirming consumer rights against arbitrary forfeiture.