Unenforceable forfeiture in a reservation form led to refund, with equitable relief granted through inherent powers.

A one-sided forfeiture condition in an unexecuted reservation form was treated as unenforceable where no agreement for sale, allotment letter, or confirmation letter had been issued. The forum held that the printed reservation term was unfair, unreasonable, and inconsistent with the protective object of real estate law, and that equitable relief could still be moulded through inherent powers to secure justice and prevent abuse of process. The refund direction based on a non-existent booking form was therefore unsustainable on the facts, and the promoter was required to refund the amount paid.

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Issues: Whether the impugned order directing refund on the basis of a booking form signed by both parties was legal, and whether the promoter could forfeit the amount paid under the reservation request form.

Analysis: The reservation request was the only document signed by the allottee and no agreement for sale, allotment letter, or confirmation letter had been issued. The forfeiture condition in the printed reservation form was treated as one-sided, unfair, unreasonable, and inconsistent with the protective object of the real estate law. The claim for refund was not founded on the statutory remedy for failure to deliver possession, but the Authority and Tribunal could nevertheless mould relief by exercising inherent powers to secure justice and prevent abuse of process. The order below was found to rest on a non-existent booking form and was therefore unsustainable.

Conclusion: The forfeiture clause was held unenforceable on the facts, and the promoter was directed to refund the amount paid to the allottee.

Final Conclusion: The appeal succeeded, the impugned refund order was set aside, and the allottee's claim for refund was allowed.

Ratio Decidendi: A one-sided and unconscionable forfeiture condition in an unexecuted reservation form cannot defeat the allottee's right to refund, and the adjudicatory forum may grant equitable relief using its inherent powers where necessary to do justice.

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