RAMESH CHAND vs M/S. TANMAY DEVELOPERS PVT. LTD. .

The Supreme Court upheld the High Court's order directing the refund of earnest money paid by the appellants to M/s. Tanmay Developers Pvt. Ltd. under the agreements to sell, emphasizing that the forfeiture of earnest money was not justified as the performance period had expired due to the land acquisition process initiated under Section 4 of the Land Acquisition Act, 1894. The Court clarified that disputes regarding forfeiture and specific performance should be resolved in civil suits rather than through the Land Acquisition Act's provisions. The appeal was dismissed, affirming the High Court's decision.