This judgment deals with forfeiture of earnest money under an Agreement to Sell and whether the seller must prove actual loss to retain it.

Case Snapshot

• Case Name: Somnath Kharbanda (Since Deceased) Through His LRs & Ors. v. Arvinder Kaur (Since Deceased) Through Her LRs

• Citation / Neutral Citation: 2026:DHC:9462

• High Court: High Court of Delhi

• Bench: Justice Neena Bansal Krishna

• Date of Judgment: October 27, 2026

• Area of Law: Indian Contract Act, 1872; Section 74; forfeiture of earnest money; Agreement to Sell; breach of contract

Judgment Headline

Delhi HC: Seller Cannot Forfeit Earnest Money Without Proving Actual Loss

The Judgment in One Line

Delhi High Court dismissed a seller’s appeal, holding that forfeiture of earnest money under Section 74 requires proof of legal injury, which the sellers failed to establish.

Why This Judgmen

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