Ramesh Chand And Ors vs M/S. Tanmay Developers Pvt. Ltd. And Ors

The Supreme Court addressed the issue of earnest money forfeiture in the context of agreements to sell land, specifically under the Land Acquisition Act, 1894. The Court held that disputes regarding the forfeiture of earnest money and entitlement to specific performance cannot be adjudicated under Section 30 of the Act, as these involve complex civil rights issues better suited for resolution in civil courts. The High Court's order directing the refund of earnest money was upheld, emphasizing the need for proper judicial forums to resolve such disputes.