Supreme Court Orders Refund of Advance in Property Deal: Equitable and in the Interest of Justice

In a property dispute, the Supreme Court of India, led by Justices Vikram Nath and Satish Chandra Sharma, granted a significant relief to the appellant in a prolonged property dispute. The apex court ordered the respondents to refund an advance payment of Rs. 40,00,000 to Devika Real Estate, the appellant in the case.

The dispute centered around an agreement to sell a property made in 2006, where Devika Real Estate alleged having paid Rs. 40,14,500 as an advance. However, the respondents, including M/s Moksha Buildtech Pvt Ltd, contested this amount, admitting to receiving only Rs. 23 lakhs.

The original suit filed by Devika Real Estate was dismissed under Order 7 Rule 11 of the Civil Procedure Code (CPC), on grounds of lack of accrued cause of action. The Supreme Court, upon reviewing the case, issued notice limited to the aspect of the refund of the claimed amount.

In a critical observation, the Supreme Court noted, "Considering the facts and circumstances of the case, we feel that whatever be the terms and conditions, it would be equitable and in the interest of justice that the appellant would be entitled to receive the advance amount paid by him along with some interest as the said amount had remained with respondent nos. 2 to 6 for a substantial time of about 18 years."

The Court's decision takes into account the long duration for which the respondents held the advance amount. This ruling emphasizes the judiciary's commitment to ensuring fairness and justice in commercial transactions.

The Court's directive for the respondents to refund Rs. 40,00,000 within eight weeks marks a significant conclusion to this legal battle, highlighting the importance of honoring financial commitments in property dealings.

Date of Decision: 18th January 2024

DEVIKA REAL ESTATE VS M/S MOKSHA BUILDTECH PVT LTD AND ORS.