Case Law Analysis
|Bombay High Court
Section 34 Arbitration Act | Security Deposit Refund Mandatory Unless Contract Explicitly Allows Forfeiture: Bombay HC
Bombay High Court rules that a security deposit cannot be forfeited upon valid termination of a contract unless the agreement expressly permits it. The ruling underscores that arbitration awards directing refunds of deposits and license fees stand unless contractual terms provide otherwise, impacting commercial disputes involving public procurement and licensing agreements.