https://www.taxtmi.com/caselaws?id=765765 The SC upheld NCDRC's direction to reduce forfeiture from full amount to 10% of Basic Sale Price, finding the original forfeiture clause unfair and one-sided favoring the developer. The court applied principles from Satish Batra case regarding earnest money forfeiture, noting the agreement's unreasonable terms including minimal compensation for buyer delays versus harsh penalties for buyer default. However, SC overturned the interest award on refunded amount. The developer must refund balance amount exceeding 10% BSP without interest. Appeal allowed partially, establishing that forfeiture clauses must be reasonable and not penalize parties with unequal bargaining power. en-us Mon, 03 Feb 2025 00:00:00 +0530 Mon, 10 Feb 2025 07:50:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=765765 The SC upheld NCDRC's direction to reduce forfeiture from full amount to 10% of Basic Sale Price, finding the original forfeiture clause unfair and one-sided favoring the developer. The court applied principles from Satish Batra case regarding earnest money forfeiture, noting the agreement's unreasonable terms including minimal compensation for buyer delays versus harsh penalties for buyer default. However, SC overturned the interest award on refunded amount. The developer must refund balance amount exceeding 10% BSP without interest. Appeal allowed partially, establishing that forfeiture clauses must be reasonable and not penalize parties with unequal bargaining power. Case-Laws Indian Laws Mon, 03 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=765765