In Brief
Odisha Forest Development Corporation cancelled a tender buyer's agreement for non-payment of required security deposit and re-auctioned the Kendu leaves at a lower price. The buyer obtained a writ petition with interim orders requiring deposits to continue the tender process, then withdrew the petition. The High Court ordered unconditional refund of deposits. The Supreme Court partly allowed the appeals, holding that such deposits serve a purpose and must be retained to enable quantification of losses caused by litigation-induced delays. The Corporation must issue detailed notices, pass speaking orders showing loss calculations, and adjust deposits accordingly, while permitting the buyer to challenge the order before appropriate forums.",
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