In Brief
South Eastern Coalfields Ltd. issued a Letter of Intent awarding a mining equipment contract to S. Kumar's Associates (JV). Although the respondent mobilized equipment and started work, it failed to deposit required performance security and sign the Integrity Pact before the formal contract could be executed. When the respondent faced equipment breakdown, the appellant terminated the work and sought to recover the difference in contract value awarded to another contractor. The Supreme Court held that no concluded contract existed between the parties because the tender document explicitly made performance security deposit a condition precedent to contract formation. The Court distinguished this case from prior precedents and held that the appellant could only forfeit the bid security but was not entitled to recover additional amounts. The appeal was dismissed and the refund balance was ordered to be paid to the respondent."
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