In Brief
The appellant's husband won an auction for a liquor retail licence in 1999, depositing earnest money of Rs. 94 lakhs. The confirmation order was communicated on 1 June 1999, requiring execution of the lease deed within 15 days. He died on 16 June 1999 (the 15th day), before the deadline expired. The State forfeited the earnest money and charged the appellant for re-auction losses. The High Court upheld forfeiture. The Supreme Court held that death before the lease was executed cancelled the right entirely, making it non-heritable; the earnest money must be refunded with interest, as the State should have shown compassion in the circumstances.
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