STATE OF GUJARAT versus DAHYABHAI ZAVERBHAI

STATE OF GUJARAT versus DAHYABHAI ZAVERBHAI

Forfeiture of security deposit was valid as contractor abandoned execution of the contract; Clause-3 expressly permitted rescission and forfeiture in such event.

Parties
Appellant: State of Gujarat; Respondent: Dahyabhaizaverbhai
Jurisdiction
India
Judgment Date
24 February 1997
Procedural Posture
Civil Appeal / Appeal From Gujarat High Court, First Appeal No. 3875 of 1995
Outcome
Appeal allowed. No costs.
Legal Topics
Rescission of Contract, Forfeiture of Security Deposit, Abandonment of Contract
Contract Law Rescission of Contract Forfeiture of Security Deposit Abandonment of Contract

Case Brief

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Parties

State of Gujarat

Appellant

Dahyabhaizaverbhai

Respondent

Procedural Posture

Civil Appeal / Appeal From Gujarat High Court, First Appeal No. 3875 of 1995

Legal Issues

  1. 1 Whether forfeiture of security deposit upon abandonment of contract by contractor is valid under the express terms of the contract.
  2. 2 Whether the direction for refund of security deposit by the High Court was correct.

Ratio Decidendi

Forfeiture of security deposit was valid as contractor abandoned execution of the contract; Clause-3 expressly permitted rescission and forfeiture in such event.

Court Disposition

Appeal allowed. No costs.

Orders

  • Delay condoned.
  • Leave granted.