In Brief
The appellant purchased a property under an Agreement of Sale (ATS) dated 25.07.2007, paying Rs. 20,00,000/- as 'advance money' towards the total sale consideration of Rs. 55,50,000/-. The agreement required payment of the balance amount within four months. The appellant failed to pay within the stipulated period, and the sellers forfeited the advance money and sold the property to third parties. The appellant sued for specific performance. The trial court and High Court dismissed the suit, holding that the appellant failed to prove readiness and willingness to perform the contract and was not entitled to refund of the advance money as no specific prayer was made under Section 22 of the Specific Relief Act, 1963. The Supreme Court upheld the dismissal, holding that the advance money constituted earnest money and was rightfully forfeited. The Court clarified that while plaints can be amended at any stage to seek alternative relief including refund of earnest money, courts cannot grant such relief suo moto; it must be specifically claimed.
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