In Brief
Paulmech Infrastructure participated in a tender for a 40-year lease of a hotel property and was selected as the highest bidder. A Letter of Intent (LOI) required payment of Rs.9.34 crore within 30 days, with Rs.8.82 crore being non-refundable. The appellant failed to pay by the deadline and obtained extensions, eventually paying in installments after the extended deadline. When the lessor (UAHCL) terminated the LOI, the appellant sought relief through a writ petition. The Supreme Court upheld the termination as justified, but held that amounts paid after the termination date must be refunded to avoid unjust enrichment. The Court permitted the appellant to pursue a civil suit for recovery of amounts paid within the extended period, allowing UAHCL to set off any losses incurred.
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