Kaushalya and Santokh Singh son of Jaswant Singh through registered sale deed and constructed the house on it. On September 1, 2005, he executed an agreement to sell in respect of the house in favour of defendant – Jyoti for total sale consideration of Rs. 1,92,000/- and received ` 95,000/- as earnest money and delivered possession thereof to defendant. The date for execution of sale deed was fixed as September 1, 2006 but defendant failed to get the sale deed executed as she failed to arrange the balance sale consideration, and other expenses to be incurred for execution & registration. At the time of execution of agreement of sale, it was agreed between the parties that in case, defendant failed to get the sale deed executed, the earnest money paid by her to Joga Singh would be forfeited. Plaintiff requested the defendant to deliver back the possession of the house in question to him but she showed her inability instead she assured the plaintiff that she would arrange some other vendee for purchase of the house. As per assurance of defendant, he executed General Power of Attorney on September 25, 2006 in favour of defendant but she again failed to arrange the other vendee and to get the sale deed executed. Thereafter, plaintiff cancelled the General Power of Attorney vide registered Cancellation Deed. Plaintiff requested the defendant to deliver the possession of house but she refused to do so. Accordingly, Joga Singh instituted the suit claiming that defendant has no right to retain the possession of suit property; agreement of sale stood cancelled; earnest money pay by the defendant to him stood forfeited and plaintiff is entitled to possession of the house in question.
