In Brief
Five land-owners contracted to sell their property to Tanmay Developers, who paid earnest money totalling over Rs. 1.68 crores but failed to complete the purchase within the contractual timeframe. The land-owners forfeited the earnest money. When the land was later acquired under the Land Acquisition Act 1894, the developer sought refund of the earnest money through a reference under Section 30. The High Court granted refund with interest. The Supreme Court set aside this order, holding that since the developer had already filed civil suits seeking the same relief (refund and specific performance), it was improper to invoke the discretionary Section 30 remedy. Disputed questions about forfeiture and the developer's readiness to perform must be resolved through pending civil suits, not through land acquisition proceedings. Land-owners are entitled to compensation, subject to the outcome of the civil litigation."
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