In Brief
The appellants booked a residential apartment with a developer and made payments towards the booking amount. The original allotment letter stipulated 25% as the booking amount, but correspondence in February 2008 documented an agreement to reduce this to 15%, which the developer explicitly accepted. After the appellants paid Rs 6.5 lakh (exceeding the 15% requirement), the developer refused to execute the sale agreement and later cancelled the allotment, claiming only 25% had been paid. The Supreme Court held that the booking amount had validly been reduced to 15%, the appellants had paid the required amount, and section 4 of the Karnataka Ownership Flats Act 1972 obligated the developer to execute the agreement. The Court allowed the appeal and directed the developer to execute the necessary agreements upon payment of the balance consideration."
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