HARYANA FINANCIAL CORPORATION vs RAJESH GUPTA

The Supreme Court held that the Haryana Financial Corporation's forfeiture of Rs.2.5 lakhs as earnest money was illegal, as the respondent had raised valid concerns regarding the lack of an approved passage for the factory, which were not addressed by the Corporation. The Court emphasized that a buyer's concerns must be adequately addressed before forfeiting earnest money, thereby establishing that forfeiture without proper justification violates principles of fairness and equity. The Court ordered the Corporation to refund the forfeited amount along with interest.