Deciding two connected writ petitions arising from a common Industrial Tribunal Award, the Delhi High Court set aside the Tribunal's direction granting hotel workmen a further…
Labour Laws
06/09/20264 min read
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Informative
10% Forfeiture Of Earnest Money Reasonable In Default Of Payment Cases: NCDRC
Consumer Protection ActRERA & Property Act
The NCDRC (National Consumer Disputes Redressal Commission) ruled that "10% forfeiture of earnest money is reasonable in default of payment cases." The commission clarified that if a buyer defaults on payment terms in a property transaction, the seller is justified in forfeiting a reasonable percentage of the earnest money (advance payment) as compensation for the breach. The 10% figure is often considered a reasonable standard in such situations, balancing the rights of both buyers and sellers.
