In Brief
Sudha Gupta purchased a plot from DLF Ltd in 1991 but defaulted on instalment payments. DLF cancelled the allotment and forfeited her earnest money of Rs.1,55,105. Sudha later filed a complaint alleging unfair trade practices. The Supreme Court held that DLF had no justifiable loss since it later sold the same plot to another buyer for a substantially higher price. Although Sudha was a persistent defaulter, DLF's forfeiture was unjustified. The Court denied specific performance as the property had been validly transferred to a third party, but ordered DLF to pay Rs.30 lakhs as just and fair compensation, depositing it in court registry within six weeks."
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