#security deposit refund

The Kerala High Court ruled that the state cannot withhold or claim damages upon contract termination unless it proves actual financial loss, mandating the return of the security deposit with 9% interest. This reinforces the principle that liquidated damages must reflect real harm, not serve as punitive leverage in public procurement - a critical safeguard for contractors.

Karnataka High Court rules that joint development agreements lacking precise specifications fail the 'readiness and willingness' test under Section 14(3)(c) of the Specific Relief Act, rendering them unenforceable. Developers risk forfeiture of security deposits if terms are not clearly defined, reinforcing strict compliance for contract enforcement.

Bombay High Court rules that electricity suppliers cannot recover minimum guarantee charges post-permanent disconnection, even if paid during temporary disconnection. The judgment also invalidates one-time settlement (OTS) approvals without consumer consent and mandates security deposit refunds, reinforcing consumer protection in electricity supply agreements.

Madhya Pradesh High Court holds that arbitration can be invoked under Section 11 of the Arbitration and Conciliation Act, 1996, if disputes arise from contractual non-performance or third-party actions, even without formal contract termination. The ruling clarifies that the existence of a dispute, not contract termination, is the threshold for arbitration reference, impacting commercial contracts and arbitrator appointments.

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.