https://www.taxtmi.com/caselaws?id=217657 Earnest money may be forfeited when a purchaser defaults in completing an immovable property sale if the contract and surrounding intention show the payment was meant to secure performance rather than operate as a mere advance. Where the agreement expressly provides for cancellation and forfeiture on the purchaser's failure to fulfil the conditions, the seller may retain the entire earnest money. The Court applied settled principles that earnest money is paid at the time of contracting, forms part of the purchase price on completion, and is liable to forfeiture on the purchaser's default. The purchaser's refund claim failed, and the contrary view was set aside. en-us Thu, 18 Oct 2012 00:00:00 +0530 Mon, 05 May 2025 18:34:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=217657 Earnest money may be forfeited when a purchaser defaults in completing an immovable property sale if the contract and surrounding intention show the payment was meant to secure performance rather than operate as a mere advance. Where the agreement expressly provides for cancellation and forfeiture on the purchaser's failure to fulfil the conditions, the seller may retain the entire earnest money. The Court applied settled principles that earnest money is paid at the time of contracting, forms part of the purchase price on completion, and is liable to forfeiture on the purchaser's default. The purchaser's refund claim failed, and the contrary view was set aside. Case-Laws Indian Laws Thu, 18 Oct 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=217657