ISSUE:
Whether forfeiture of earnest money by the Haryana Financial Corporation is justified?
Whether the Corporation failed to disclose the material defects under the garb of sale as per the “as is where is” basis?
RULE:
The vendor, especially as a State instrumentality is expected to act fairly, and required to disclose all material defects in the property to the vendee as obligated by section 55 of the Transfer of Property Act, 1882.
However, if it fails to do so, any forfeiture of earnest money would be unjustified.