1995 (1) TMI 386

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....he judgment of the learned Single Judge of the High Court of Punjab & Haryana in R.S.A.No.931/1986, dated 11.8.1986. The appellant had entered into an agreement with the respondent on 13.1.78 to purchase 1/3rd share of the land belonging to the respondent for a total consideration of Rs. 78,000/- and paid a sum of Rs. 20,000/- as earnest money. The sale deed was to be executed on or before 30.4.78....

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....the terms of the contract, admittedly entered into between the parties, is that in the event of acquisition of land by the Government for a public purpose, the respondent "shall return the earnest money without interest." Admittedly, since the notification u/s 4(1) of the Land Acquisition Act was already published, the question arises whether the appellant could get a sale deed executed and in its....

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....umbrances Any sale transaction or encumbrances created by the owner after the publication of notification under s.4(1) would therefore be void and does not bind the State. In this perspective, when 'the necessary conclusion is that the agreement of sale stands frustrated, the question of readiness and willingness on the part of the vendor or vendee does not arise. The appellate court wrongly h....

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....pellant is entitled under s.33 of the Contract Act, as rightly and legally held by the trial court, to seek refund of the earnest money. 3. Section 33 of the Contract Act reads thus:-     "33. Contingent contracts to do or not to do anything if an uncertain future event does not happen can be enforced when the happening of that event becomes impossible, and not before. The ....