In Brief
Odisha Forest Development Corporation terminated an agreement with respondents for failure to deposit additional security (25% of contract value). Respondents sought writ relief; the High Court ordered a deposit. The Supreme Court held that court-ordered deposits made during writ proceedings cannot be automatically classified as contractual security deposits unless the writ succeeds. The appellant can recover auction losses through forfeiture and re-auction, but only after quantifying such losses via due process. The retained deposits cannot be unilaterally appropriated. All appeals were partly allowed, preserving both parties' rights for further proceedings without order as to costs."
The lawyer headnote and full judgment text are available to registered users.