9911796707
TMI Blog1995 (1) TMI 386X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court of Punjab & Haryana in R.S.A.No.931/1986, dated 11.8.1986. The appellant had entered into an agreement with the respondent on 13.1.78 to purchase 1/3rd share of the land belonging to the respondent for a total consideration of ₹ 78,000/- and paid a sum of ₹ 20,000/- as earnest money. The sale deed was to be executed on or before 30.4.78. Later the appellant came to know that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nto between the parties, is that in the event of acquisition of land by the Government for a public purpose, the respondent "shall return the earnest money without interest." Admittedly, since the notification u/s 4(1) of the Land Acquisition Act was already published, the question arises whether the appellant could get a sale deed executed and in its absence whether he is entitled to ob ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umbrances created by the owner after the publication of notification under s.4(1) would therefore be void and does not bind the State. In this perspective, when 'the necessary conclusion is that the agreement of sale stands frustrated, the question of readiness and willingness on the part of the vendor or vendee does not arise. The appellate court wrongly held that the appellant was not ready ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Contract Act, as rightly and legally held by the trial court, to seek refund of the earnest money. 3. Section 33 of the Contract Act reads thus:- "33. Contingent contracts to do or not to do anything if an uncertain future event does not happen can be enforced when the happening of that event becomes impossible, and not before. The contract in question being a contingent contract based o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court did not apply its mind nor did it advert to any of these relevant circumstances. It simply dismissed the second appeal in limine, as if it was a routine. Therefore, we hold that the decree of the High Court and that of the District Judge are vitiated by manifest gross errors of law. They are set aside accordingly. The decree of the trial court is restored. 4. The appeal is allowed. In the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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