Court : Delhi
Reported in : 152(2008)DLT324; 2008(104)DRJ580
..... court in that case held that since earnest money is always for the performance of the contract, pre-deposit of the same even before a contractor submits a tender was unnecessary and unjustified. ..... the said decision, which culminated in an office memorandum dated 29th june, 2004 impugned in the present writ petition, in stead of earnest money being deposited along with the tender the same was stipulated as a condition for the issue of the tender documents to any contractor. ..... of the cost of tender document may be perfectly justified, stipulation of a pre-deposit of earnest money for the issue of the documents would be wholly unwarranted. ..... earnest money or deposit also, thus, serves two purposes of being part payment of the purchase money and security for the performances of the contract by the party concerned, who paid ..... deposit, it is argued, is given at the time of conclusion of the contract and not at the time of purchase of the tender documents which is only a step-in-aid of the finalization of a contract. ..... described the characteristics of earnest money deposited in the following words:(1) it must be given at the moment at which the contract is concluded. ..... making a deposit towards earnest money at the stage of purchase of the tender document even otherwise is likely to scare away tenderers and thereby reduce competition among those interested in securing a contract. ..... evident from the above that an earnest money deposit is always meant to secure the performance of a contract. .....
Tag this Judgment!Court : Delhi
..... clause, in the pre-contract integrity pact was directed towards the deposit made by the petitioner ..... 22.2 on behalf of the respondents, the learned asg submitted that this court has no territorial jurisdiction to entertain and adjudicate upon the writ petition for the following reason: the contract executed between the parties dated 16.03.2009, the correspondences exchanged, the fir lodged, the criminal trial which followed thereafter, and the personal hearing which was accorded to the petitioner, ..... directs cancellation and debarment has been taken by concerned respondent in terms of the main contract and not as per the pre-contract integrity pact. ..... 22.4 the reliance, on clause 14 of the pre-contract integrity pact, to invoke jurisdiction of this court ..... 4.3 on 20.09.2007, imi also signed a pre-contract integrity pact in terms of clause 33 of the tender, which was executed as per the format provided in annexure ..... made in the report dated 15.01.2011, generated by the committee, the ofb issued the impugned order dated 05.03.2012 terminating the contract and debarring imi from further business dealings with it, the department of defence production and the m.o.d, for a period of ten years ..... the pre-contract integrity pact dated 20.09.2007 adverts to the fact that the place of performance and ..... order the advance payments were wrongfully released to the petitioner, contrary to the provisions of article 3 of the contract, that is, prior to completion of the pre-requisites contained therein. .....
Tag this Judgment!Court : Supreme Court of India
Reported in : JT1994(4)SC628; 1994(3)SCALE371; 1994Supp(3)SCC109; [1994]Supp1SCR762; [1994]95STC80(SC)
..... for transportation, put of the country, to the destination of the foreign buyer, to satisfy the requirements of the pre-existing contract, the delivery of the goods at the paradeep port was thus in ..... :.with all its grammatical variations and cognate expressions, any transfer of property in goods for cash or deferred payment or other valuable consideration, including a transfer of property in goods involved in the execution of contract but does not include a mortgage, hypothecation, charge or pledge and the words 'buy' and 'purchase' shall be construed accordingly; explanation : (a) a sale or purchase of goods shall be deemed to ..... for re-sale within the state of orissa but also concealed the fact that there was a pre-existing contract between the assessee and the japanese buyers to satisfy which the mineral ores were being purchase ..... respondent that the assessee by the deposit of the mineral, ores at paradeep port made a 'sale' to the foreign buyer at the port is fallacious and overlooks the fact that the purchase had been made by the assessee from the registered dealers, to satisfy his pre-existing contract with the japanese buyer and the goods were deposited or believed at paradeep port ..... sold the mineral ores in the course of export to the japanese buyers with whom the assessee had pre-existing export contracts. .....
Tag this Judgment!Court : Supreme Court of India
..... court, the learned single judge after due consideration of the decisions of this court in perkins eastman (supra) and icomm tele limited (supra), held that any clause in the agreement that requires one of the contracting parties to make a deposit of an amount as a pre-condition for invoking the arbitration should be seen as one rendering the entire clause arbitrary being not only excessive or disproportionate but something that may lead to a wholly unjust situation. ..... following issues fall for the consideration of this court: (i) whether the dictum as laid down in icomm tele limited (supra) can be made applicable to the case in hand more particularly when clause 55 of the general conditions of contract provides for a pre-deposit of 7% of the total claim for the purpose of invoking the arbitration clause?. ..... (iii) whether this court while deciding a petition filed under section 11(6) of the act 1996 for appointment of a sole arbitrator can hold that the condition of pre-deposit stipulated in the arbitration clause as provided in the contract is violative of the article 14 of the constitution of india being manifestly arbitrary?. ..... the learned counsel further submitted that the condition for pre-deposit of 7% of the claimed amount to initiate arbitration in accordance with clause 55.1(b)(i) of the contract is contrary to the decision of this court in the case of icomm tele limited v. .....
Tag this Judgment!Court : Kolkata
..... therefore, when parties have expressly agreed that recovery from the contractor for breach of the contract is pre-estimated genuine liquidated damages and is not by way of penalty duly agreed by the parties , there was no justifiable reason for the arbitral tribunal to arrive at a conclusion that still the purchaser should prove loss suffered by ..... has admitted that the deduction of both penalty and security deposit in view of the breach of contract by the plaintiff was correct vide answer to question nos. ..... for manufacture , testing , supply and delivery of acsr, rabbit conductors upto the above extent of actual delivery already affected until this date with forfeiture of security deposit and imposition of penalty for late delivery of materials and unexecuted quantities of materials as per terms of the order. ..... the condition by way of penalty and for forfeiture of security deposit were thus in the nature of pre-determined compensation in the event of breach and the amount which has been deducted by the defendant has passed the test of ..... two letters both dated 21st august, 1990 the defendant terminated the order dated 8th february, 1988 and 14th march, 1988 and expressed that security deposit will be forfeited and there will be a penalty for delivery and non-delivery of goods. ..... by its letter dated 21st august,1990 terminated the order dated 30th january, 1988 and forfeited the security deposit and levied penalty on account of alleged late delivery of goods and non-delivery of goods. .....
Tag this Judgment!Court : Kolkata
..... therefore, when parties have expressly agreed that recovery from the contractor for breach of the contract is pre-estimated genuine liquidated damages and is not by way of penalty duly agreed by the parties , there was no justifiable reason for the arbitral tribunal to arrive at a conclusion that still the purchaser should prove loss suffered by ..... has admitted that the deduction of both penalty and security deposit in view of the breach of contract by the plaintiff was correct vide answer to question nos. ..... for manufacture , testing , supply and delivery of acsr, rabbit conductors upto the above extent of actual delivery already affected until this date with forfeiture of security deposit and imposition of penalty for late delivery of materials and unexecuted quantities of materials as per terms of the order. ..... the condition by way of penalty and for forfeiture of security deposit were thus in the nature of pre-determined compensation in the event of breach and the amount which has been deducted by the defendant has passed the test of ..... two letters both dated 21st august, 1990 the defendant terminated the order dated 8th february, 1988 and 14th march, 1988 and expressed that security deposit will be forfeited and there will be a penalty for delivery and non-delivery of goods. ..... by its letter dated 21st august,1990 terminated the order dated 30th january, 1988 and forfeited the security deposit and levied penalty on account of alleged late delivery of goods and non-delivery of goods. .....
Tag this Judgment!Court : Chennai
..... need not consider each and every ground raised and answer the same for the purpose of disposing of the interim application for waiver of the pre-deposit and in fact section 35f requires the appellate tribunal to find out as to whether the complaint of the appellant to deposit the duty demanded or the penalty levied would cause undue hardship and for that purpose only the prima facie case is to be considered.23. ..... predeposit under section 35f of the central excise act suffers from non-consideration of relevant aspect/statutory condition stands vitiated and the tribunal ought to have seen that any condition directing pre-deposit would cause "undue hardship" inasmuch the petitioner has not collected any service tax on the bonafide belief that the levy of service tax is impermissible 5. ..... contention that a pure and simple sale/purchase transaction cannot be mis-construed as a service contract under section 65(19)(iv) of the finance act, 1974. ..... (hp) had also entered into a contract with another company viz. ..... have entered into a contract with a multi national ..... as far as the contract entered into with the mnc (hp) is concerned, there is an obligation on the part of the appellant to sell the spares, components and accessories to the said mnc (hp) and hand over the same to the ..... sold completely overlooking the fact that the fixed sum constitutes the value of goods sold and section 9 of "sale of goods act" leaves the manner of fixing the price to the discretion of the contracting parties 4. .....
Tag this Judgment!Court : Supreme Court of India
..... be any attachment on the pre-deposit in any proceedings under section 13(10) of the act read with rule 11 of the security interest (enforcement) rules, 2002, or if there be any attachment in any ..... , either on merits or on withdrawal, or on being rendered infructuous, in case, the appellant makes a prayer for refund of the pre- deposit, the same has to be allowed and the pre-deposit has to be returned to the appellant, unless the appellate tribunal, on the request of the secured creditor but with the consent of the depositors, had already appropriated the pre-deposit towards the liability of the borrower, or with the consent, had adjusted the amount towards the dues, or if there ..... on dismissal of the appeal the amount deposited as a pre-condition for filing the appeal will be refunded to the appellant and therefore, he is no way ..... we are also unable to agree with the contention that the bank has a lien on the pre-deposit made under section 18 of the sarfaesi act in terms of section 171 of the indian contract act, 1872. ..... learned senior counsel appearing for the appellant-bank submits that the first respondent has no right to get back the deposit made by it as a pre-condition for entertaining the appeal. .....
Tag this Judgment!Court : Singapore Supreme Court
..... a collateral warranty (or other agreement) of legal effect or to render inadmissible any extrinsic evidence which reveals terms inconsistent with what is written in the contract (see lee chee wei v tan hor peow victor and others and another appeal [2007] 3 slr(r) 537 ("lee chee wei") at [36]). ..... that the letter of offer and the sub-lease have been validly rescinded, the contracts are wiped away and there remains no contractual basis on which the defendant can make ..... as a consequence of rescission, therefore, the plaintiff is entitled to a return of its deposit and pre-paid rent, ie, the following sums: (a) the sum of $345,625 being the security deposit; (b) the sum of $73,963.75 being rent prepaid for june 2011; and (c) the sum of $69,125 being an inadvertent double payment ..... also implies that all necessary approval to use the premises as a showroom - as contracted for - had already been granted and the tenant was responsible for abiding by the ..... the plaintiff does not rely on the doctrine of common mistake which renders a contract void ab initio at common law (bell v lever brothers [1932] ac 161) but instead relies on the equitable doctrine (from solle v butcher [1950] 1 kb 671 and grist v bailey [1967] ch 532) which permits ..... that the sla was not concerned at all with the permitted use of the premises under the planning act and instead sought to impose the differential premium on prologis as a matter of contract for a deviation from the permitted use of rbc under the state lease. .....
Tag this Judgment!Court : Supreme Court of India
..... merits or on withdrawal, or on being rendered infructuous, in case, the appellant makes a prayer for refund of the pre- deposit, the same has to be allowed and the pre- deposit has to be returned to the appellant, unless the appellate tribunal, on the request of the secured creditor but with the consent of the depositors, had already appropriated the pre-deposit towards the liability of the borrower, or with the consent, had adjusted the amount towards the dues, or if there ..... the submission that the bank had general lien over such deposit in terms of section 171 of the contract act, 1872 was rejected as the money was not with the bank but ..... unable to agree with the contention that the bank has a lien on the pre-deposit made under section 18 of the sarfaesi act in terms of section 171 of the contract act, 1872. ..... considered the submission that the concerned bank had lien on the deposited amount in terms of section 171 of the contract act, 1872. ..... nature of pre-deposit in terms of section 18 of the sarfaesi act was considered in para 21 and it was concluded that such deposit was neither a secured asset nor was a secured debt and in the circumstances, the prayer for refund of amount in deposit was required ..... secured debt either, since the borrower or the aggrieved person has not created any security interest on such pre-deposit in favour of the secured creditor. ..... the pre- deposit made by a borrower for the purpose of entertaining the appeal under section 18 of the act is not with the bank .....
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