...: AIR 1973 SC 1098) the Apex Court held that a party to a contract taking security deposit from the other party to ensure due performance of the ...hence the contract had been terminated at his risk and cost in terms of Clause 62 of the General Conditions of Contract. An amount of Rs. 3 lakhs deposited as security deposit an...such circumstances the forfeiture of Rs. 3 lakhs deposited as security deposit is patently wrong, illegal and perverse. Reference was made to the decisions in...

...August 27, 1956. Such rescission on the part of the respondent-defendant was clearly illegal and wrongful and thereby the respondent-defendant committed a breach of contract, with the result that there could be no ...the clauses 2 and 3 of the “Conditions of Contract”, was not entitled both to levy compensation and also to forfeit the security deposit. Accordingly, the High Court upheld the forfeiture ...rescission of the contract was wrongful the State was not entitled to forfeit the security deposit nor levy any penalty. He accordingly decreed the appellant-plaintiff's claim in respect of refund ...

...required to submit its show cause reply with reference to the proposed action of forfeiture of its security deposit. The submission of the respondents that no show cause was required in cases ...forfeiture of the security deposit. Moreover, Clause 53.1 of the SBD relied upon by the respondents merely provides for recovery of any excess owing to the employer over the amount owing to the co...respondents not to rescind the contract and for preventing forfeiture and encashment of the security deposit etc. are not pressed, as having become infructuous in view of subsequent developments b...

...required to submit its show cause reply with reference to the proposed action of forfeiture of its security deposit. The submission of the respondents that no show cause was required in cases ...visualise forfeiture of the security deposit. Moreover, Clause 53.1 of the SBD relied upon by the respondents merely provides for recovery of any excess owing to the employer over the amount owing...respondents not to rescind the contract and for preventing forfeiture and encashment of the security deposit etc. are not pressed, as having become infructuous in view of subsequent developments...

...contract between them. The question to be decided would be whether the petitioner has committed any breach of contract or is it on account of not granting the work front by the 2 respondent ...JUDGMENTPetitioner has approached this Court seeking for a direction to the 2nd respondent to return security deposit of Rs. 1 lakh, which is given in the form of National...Savings Certificate and to quash Ext. P4.2. Ext. P4 is an order issued by the 2 respondent cancelling the contract awarded to the petitioner and informing him that the security deposit...

...security deposit from the other party to ensure due performance of the contract is not entitled to forfeit the deposit on ground of default when no loss is caused to him consequence of su...Pleader that as per the stipulation in the contract, as the appellant had committed breach of contract, the respondents are entitled to forfeit the security deposit. Ext. B2(n) is the copy ...inspite of the repeated instructions. So the contract was terminated at the risk and cost of the appellant by retention of his security deposit and retention amount as per notice dated 1-12-1988, ...

...gatepasses issued to the contractor are returnable within a week of termination of the contract”.11. Clause (3) provides for security deposit “for the due fulfilmen...our attention so far as may be relevant in considering whether the contract is one of sale or contract of work and labour:“(1) Undertaking by the contractor work of buildi...the work done under this contract and for the return of the security deposit-subject to the provisions herein contained.…”27. Clause (30) makes provision...

...forfeiture of the security deposit of the petitioner in terms of the order dated 09.05.2012, moreso in view of the subsequent letter dated 29.04.2011 granting extension of the da...termination of the contract in case of fundamental breach thereof and does not visualise forfeiture of the security deposit. Moreover, clause 53.1 of the SBD relied upon...terms of the aforesaid interlocutory applications challenging the order dated 09.05.2012 rescinding the petitioner's contract, directing forfeiture of the security deposit and recommending for...

...contract cannot be the subject-matter of a writ petition. It was also pointed out that in a matter of contract, a writ petition is not maintainable. Even in matters of forfeiture of ...whole of security deposit is forfeited. The learned Counsel submits that as per Clause 3 of the agreement, where there is a breach of contract by the Contractor, and when he becomes liabl...petitioner objected to the unilateral decision of the respondents in terminating the contract, the respondent-authorities forfeited the security deposit furnished by the petitioner by way of a bank guarant...

...circumstances of this case, termination of contract and forfeiture of security deposit are legally valid because there was a breach of ...forfeiture on the ground of clause 14. However, since the contract was almost coming to an end, and there was short supply only for three days, the entire security deposit which constitutes Rs.17.25 lakhs...i.e. a sum equivalent to value of 10 days contracted quantity of milk, cannot be allowed to be forfeited. The forfeiture of security deposit, is valid due to the breach by the Petitioner ...

..., it is seen that the fate of the instant writ petition filed by the petitioner hinges on the determination of a complicated question of fact and law i.e., whether the petitioner is guilty of breach ...control. The petitioner claims that he made several representations to the respondents to release the security deposit for the reason that he was not guilty of any breach of contract but the respo...the rate contract by respondent No. 3. As per one of the terms and conditions of the NIT, the approved tenderer was required to furnish the security deposit equivalent to 3% of the ...

...forfeiture of security deposit in case of breach of contract such sum does not ipso facto go to the respondents. The respondents have to prove that they have sustained any legal ...Distillery and Chemical Co.Ltd. [AIR 1973 SCC 1090], Apex Court observed that the party to a contract taxing security to deposit from the other...party to ensure due performance of the contract is not entitled to forfeit the deposit on ground of default when no loss is caused to him consequence of such default. When the question is one for...

...excavating earth; use of tube-wells standing on the government site; manner of execution of the work regarding moulding and drying and provision against subletting which shall constitute a breach of the ...subletting his contract without such permission he shall be considered to have thereby committed a breach of the contract and shall forfeit his security deposit, and shall have no claim for any...(hereinafter to be described as the assessee) entered into a contract with the Public Works Department of the Government of Gujarat on September 6, 1965 for manufacture and supply of kiln-burnt bricks to...

...advocate for the appellant has submitted that the learned trial Judge has failed to appreciate that the forfeiture of security deposit for breach of contract was a condition of ...- original plaintiff has no prima facie case in the matter and the record of the case ex-facie shows that the respondent - original plaintiff committed breach of contract. Breach of ...parties. As per para-9 of the contract between the parties, the entire security deposit is liable to be forfeited for breach of contract. The Bengal gram supplied by the respondent - orig...

...against the impugned order wherein demand of Service Tax has been confirmed on liquidated damages recovered and forfeiture of earnest money deposit / security deposit by the appellant from contrac...within the prescribed timeframe, the said contracts provide for imposition of liquidated damages and in case of tenders, forfeiture of the earnest money deposit / security deposit... received certain amount as Liquidated Damages, Security Deposit (SD), Earnest Money Deposit (EMD), Retention Money withheld from the contractors on account of breach ...

...permissibility of forfeiture of security deposit for default has held as follows:“4. It is important that the breach of contract caused no loss to the appellants....other stipulation by way of penalty. We are in the present case not concerned to decide whether a contract containing a covenant of forfeiture of deposit for due performance of a ...thus committed the breach of contract in complying clause [6] of the agreement. It is also not in dispute that clause 21 of the agreement provides that the petitioner shall be entitled to encash the...

....6. The respondent then filed a writ petition in the High Court for refund of the amount. On the pleadings before it, the High Court raised two questions viz.: (a) whether the forfeiture of ...question can arise. There can be no breach of contract. There is no statutory rule or an Act whereunder the security deposit in the form of a bank guarantee could be claimed by Respondent 2. The p...withdraw his offer, he has no right to claim that the earnest/security be returned to him. Forfeiture of such earnest/security, in no way, affects any statutory right under the Indian Contract Act...

...amount paid as security for securing due performance of the contract can be permitted to the party complaining the breach of the contract. As already held hereinbefore, in the present case it is t...enough, inasmuch as the party which commits breach of contract is required to be penalised by way of forfeiture of security depositor in other words compensate the other party against who...fundamental breach of contract, (ii) the contractor was rightly held entitled to return of security deposit of Rs. 1,53,911/-, (iii) the contractor was rightly held entitled to sum ...

...on the factual aspect of the breach being committed by the defendant and no questions are put forth to the witnesses of the plaintiff on the controversy of breach of contract and ...Security Deposit as there was no breach being committed by the defendant. 6.1 The learned advocate for the appellant has placed reliance upon the Clause 30 of the Contract...rescind from the contract. Resultantly, the breach of the terms and conditions of the contract was attributed on the part of the defendant and the Security Deposit was forfeited....

...forfeiture of security deposit was a claim for adjustment for the loss suffered due to breach of contract by the plaintiff. I do not agree for the reason the essence of a claim ...; the impugned judgment also held the plaintiff disentitled to any compensation for breach of contract. However, this court cannot be oblivious of the circumstance that the defendant IOC had the obligation to both .../respondent was required to deposit Rs. 1,94,300/-, being 2.5% of the contract price, as security deposit for due performance of the contract. In the alternative, a bank guarantee for tha...