09 Jun 2026 08:27 AM

Forfeiture of Security Amount-- State Cannot Forfeit Security Deposit Without Notice To Contractor As It Violates Natural Justice

Forfeiture of security deposit without show-cause notice violates the principle of audi alteram partem. Where State action is arbitrary and carries adverse civil consequences, writ jurisdiction is maintainable even in contractual matters. Inspection reports prepared after vacation of site and dismantling of structures carry limited evidentiary value-- State directed to refund

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