Legal Insight by Shri Ganpati Jurists
Refund of Advance Payment in Property Disputes: Not Automatic
Key Legal Takeaway:
The Supreme Court has clarified that a refund of advance or earnest money in a suit for specific performance cannot be granted unless specifically prayed for in the plaint.
Why This Matters:
Courts cannot grant refund relief on their own (suo moto) if it is not included in the prayer clause of the plaint.
If such a relief is needed later, it must be added through an amendment under Section 22(2) of the Specific Relief Act, 1963.
The law allows this amendment at any stage of the proceedings, but it must be formally requested.
Only when the relief is ancillary and flows naturally from a decree (like delivery of possession in specific performance), it may not need a separate prayer.
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