Each Judge Has 15K-20K Matters' : Supreme Court Expresses Concern At Allahabad HC Case Pendency; Stresses On Need To Fill Vacancies

The Supreme Court rejected a builder’s plea to forfeit 20% of the sale price as earnest money after the cancellation of a flat booking. The Court ruled that the forfeiture was excessive under Section 74 of the Indian Contract Act, which governs liquidated damages for breach of contract. The builder had included a clause in the agreement permitting the forfeiture of the earnest money. However, the Court found this to be an unfair practice as the forfeiture amount was disproportionate to the actual loss incurred. This judgment underscores the need for fairness and proportionality in contractual clauses and protects consumers from unfair terms imposed by builders.