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Refund Clause in Agreement to Sell Does Not Bar Purchaser's Right to Seek Specific Performance: Supreme Court

17 Jul 2026 5 min read
Refund Clause in Agreement to Sell Does Not Bar Purchaser's Right to Seek Specific Performance: Supreme Court

The Supreme Court of India has ruled that a clause in an agreement to sell providing for refund of earnest money in case of non-execution of the sale deed does not automatically release the seller from the obligation to complete the sale. The Court held that a buyer can still seek specific performance of the contract if the agreement is legally enforceable and the purchaser has fulfilled his responsibilities. The…

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