New Delhi, Feb. 29 -- Case 1
* Case Title: Goutam Roy vs Avolon Projects (NC)
* CC No 1941 of 2018
* Decided on 24th January 2023 (NC)
Issue: Legal Considerations Regarding Earnest Money Forfeiture in Real Estate (What is a reasonable amountto deduct when a home buyer cancels a booking?)
Facts:
* The builder and homebuyer entered into an agreement that includes a forfeiture clause. If the homebuyer cancels the booking, 20% of the total basic sale price will be forfeited.
* Question before the National Commission was as to how much deduction is reasonable and justifiable.
The National Commission, drawing upon various Supreme Court cases, invoked Section 74 of the Contract Act of 1872. According to this provision, in instances of cont...