Supreme Court Upholds Forfeiture in Bengaluru Property Dispute

The Supreme Court affirmed a Karnataka High Court's verdict, denying a refund in a Bengaluru property dispute. The appellant failed to amend the plaint to seek such relief, leading to a forfeiture of Rs 20 lakh as earnest money. The court emphasized the importance of vigilance in legal pursuits.


Devdiscourse News Desk | New Delhi | Updated: 02-05-2025 18:17 IST | Created: 02-05-2025 18:10 IST
Supreme Court Upholds Forfeiture in Bengaluru Property Dispute
Supreme Court of India Image Credit: ANI
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The Supreme Court has upheld a Karnataka High Court ruling in a contentious property dispute in Bengaluru, emphasizing that the law favors those who actively pursue their rights. The apex court denied a refund of Rs 20 lakh to the appellant, who had not amended the plaint to seek this relief.

Justices J B Pardiwala and R Mahadevan noted that while the law allows for plaint amendments to pursue alternative reliefs, including the refund of earnest money, the appellant failed to take such action. The court highlighted that the appellant did not apply for this at any stage of the proceedings.

The dispute originated from a 2007 sale agreement where Rs 20 lakh was paid as part of a total consideration of Rs 55.50 lakh. The court determined this amount as 'earnest money,' binding the contract, which was justly forfeited due to the appellant's failure to fulfill the contract terms.

(With inputs from agencies.)

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