A. Code of Civil Procedure, 1908 (V of 1908), Section 9 – Transfer of Property Act, 1882 (4 of 1882), Section 54 -- Suit for refund of earnest money -- Agreement to sell -- Concealment of mortgage – Legal notice for refund – Effect of – Conduct of Parties – Adverse Inference from Silence -- Appellant issued a legal notice alleging concealment of the mortgage and seeking a refund -- Respondent’s failure to reply to this notice, combined with his subsequent agreement to reduce the sale price by Rs.35,00,000/- after the mortgage was discovered, was viewed as evidence of "culpable intent" and "deceit" -- Appellant held entitled to realize Rs.65,43,750/- with interest at 13% per annum from the respondent and his assets.

(Para 12, 24, 30, 31, 33)

B. Transfer of Property Act, 1882 (4 of 1882), Section 54 -- Agreement to sell – Not seeing of original title deed -- It is a common practice for landowners to keep original title deeds in the bank lockers for security purposes -- Hence, the explanation offered by the plaintiff-appellant for not insisting on the inspection of the original title deeds, at the time of entering into the agreement, was reasonable and justified.

(Para 32)