KRISHAN LAL versus FOOD CORPORATION OF INDIA & ORS.

KRISHAN LAL versus FOOD CORPORATION OF INDIA & ORS.

Respondent may retain only the contractual security deposit and extra expenditure from the appellant's deposit; remaining amount must be refunded as per High Court directions and contract terms; arbitration not feasible at belated stage.

Parties
Appellant: Krishan Lal; Respondents: Food Corporation of India & Ors.
Jurisdiction
India
Judgment Date
24 February 2012
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeal allowed
Legal Topics
Tender/contracts, Security Deposit, Alternative Remedy, Writ Jurisdiction, Forfeiture of Security
Contract Law Administrative Law Tender/contracts Security Deposit Alternative Remedy Writ Jurisdiction Forfeiture of Security

Case Brief

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Parties

Krishan Lal

Appellant

Food Corporation of India & Ors.

Respondents

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Whether the appellant is entitled to refund of the security deposit after withdrawal from contract post-tender allotment.
  2. 2 Whether the respondent is entitled to forfeit the security deposit and recover extra expenditure from the appellant.
  3. 3 Whether the claim should have been raised before the arbitrator rather than through writ petition.

Ratio Decidendi

Respondent may retain only the contractual security deposit and extra expenditure from the appellant's deposit; remaining amount must be refunded as per High Court directions and contract terms; arbitration not feasible at belated stage.

Court Disposition

Appeal allowed

Orders

  • Order of High Court set aside.
  • Respondent to refund Rs.4,73,226/- to appellant within three months.