#Indian Contract Act 1872

The Delhi High Court held that forfeiture of earnest money under an Agreement to Sell is not automatic; the party retaining the deposit must prove actual legal injury and quantifiable loss under Section 74 of the Indian Contract Act. The court distinguished the K.R. Suresh precedent, ruling it inapplicable to simple recovery suits, thereby strengthening a vendee's right to recover earnest money absent proven damages.

The Gujarat HC held a POA is not irrevocable unless the agent has an interest in the subject-matter, letting the principal cancel it even after partial use. Any sale deed executed by the agent after cancellation is void, shielding principals from unauthorized transfers.

The Delhi High Court affirmed that Section 34 of the Arbitration and Conciliation Act permits setting aside an award only on patent illegality or public-policy grounds. Consequently, the appellant’s force-majeure claim and interest-rate dispute were dismissed, narrowing set-aside avenues for parties in commercial and real-estate arbitrations.

Bombay High Court rules that an arbitration clause in a redevelopment agreement remains enforceable despite subsequent supplementary agreements, unless the original contract is explicitly substituted. The judgment reinforces the survival of arbitration clauses under the Indian Contract Act and Arbitration and Conciliation Act 1996, impacting cooperative housing societies and developers in contract disputes.