Forfeiture of earnest money
Querist :
Anonymous
(Querist) 15 December 2017
This query is : Resolved
I had entered into Agreement to Sale as buyer for purchase of property in Delhi. I gave 10% of sale value to the seller as earnest money. As per terms & conditions of ATS the balance money was required to be deposited within 60 days else the earnest money would stand forfeited. However, I could not pay balance amount due to fund crunch and loss of job of my spouse. I intimated the fact to the seller and requested to refund the money. Also that I wont be able to pay being sole earner and heavy expenses of my children on studies. The seller keeps saying that he will refund the money. but he has not refunded a single penny. I keep on requesting him that it was all our hard earned money but it seems he is in no mood to return. I have also offered him to retain a portion of the earnest money and pay me the balance. But he keeps saying I have no money to return you. I will pay when I will receive through sale of this flat. The 60 days time limit in ATS has expired. Is there any legal relief available? Kindly advise suitably.
P. Venu
(Expert) 16 December 2017
Yes, a civil action lies. But the other party is entitled for his expenses and the loss, if any, he had incurred. Moreover, as the defaulting party you would be at a disadvantage before the Court. An amicable settlement is the best option.
