K.R. Suresh vs R. Poornima

The Supreme Court examined the validity of the forfeiture of advance money in a contractual dispute, distinguishing between earnest money and advance payments. The court analyzed the permissible extent of forfeiture under contractual principles and relevant legal provisions. It emphasized that forfeiture must be reasonable and proportionate to the breach, and clarified the legal standards governing such forfeitures. The judgment provides guidance on the enforceability of contractual clauses related to advance payments and forfeiture.