Courts Can’t Grant Refund of Earnest Money Without Plea: SC Clarifies Section 22 of Specific Relief Act.
Introduction In a significant judgment, the Supreme Court of India has clarified that courts cannot grant alternative reliefs—such as the refund of earnest money—on their own (suo moto) under Section 22 of the Specific Relief Act, 1963 , unless such relief is specifically claimed by the plaintiff. This ruling reinforces the importance of precise pleadings and serves as a guiding light for civil litigation involving property transactions and contractual disputes. What Is Section 22 of the Specific Relief Act? Section 22 of the Specific Relief Act provides that in a suit for specific performance of a contract, the plaintiff may ask for certain alternative or additional reliefs such as: Possession, Partition, Refund of earnest money or deposit. However, there's a catch— these reliefs must be explicitly claimed in the plaint. The Supreme Court’s Observation In its recent ruling, the Supreme Court held that the court cannot unilaterally decide to award refund of...