Case Law Analysis
|Supreme Court of India
Contractual Sanctity Upheld | Security Deposit Interest Payable Only on Delayed Refund Beyond Agreed Period : SC
The Supreme Court ruled that security deposits under commercial contracts do not accrue interest unless refunded beyond the agreed period, reinforcing contractual sanctity while ensuring equitable relief for delayed refunds. This judgment clarifies the enforceability of explicit no-interest clauses in contracts, impacting contractors and government entities alike.