कैलाश नाथ बनाम दिल्ली विकास प्राधिकरण
| Citation | (2015) 4 SCC 136 |
| Court | Supreme Court of India |
| Date | 13 January 2015 |
| Year | 2015 |
| Bench | T.S. Thakur, A.K. Sikri JJ. |
| Acts/Articles | Indian Contract Act Section 74, Transfer of Property Act Section 55 |
| Category | Property & Land Law |
Key Principle Established
Earnest money deposited in a property transaction can be forfeited only if the contract specifically provides for it and the forfeiture is reasonable. Court can grant relief against forfeiture if the amount is penal in nature.
A property allottee’s earnest money was forfeited by DDA upon cancellation of allotment. The allottee challenged the forfeiture as unreasonable.
The Court held that forfeiture of earnest money is permissible only if:
This judgment protects property buyers from excessive forfeiture clauses and is widely cited in cases involving DDA, HUDA/HSVP, and other development authorities.
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Read AnalysisThis judgment summary is for educational and research purposes. While care has been taken to accurately represent the ratio and findings, for authoritative reference always consult the original judgment text from official sources (SCC Online, AIR, Manupatra, or court websites).
22+ years of practice before Punjab & Haryana High Court and Supreme Court of India.