Breach Of Contract U/S 74 Not Applicable At Pre-Formation Stage: Delhi High Court Directs State to Refund ₹20 Crore Forfeited Amount

Case: The Indian Hotels Company Ltd. v. Union Of India And Ors.

Coram: Justice Yashwant Varma

Case No.: WP. (C) 8779/2019, CM APPLs. 36308/2019 & 44738/2019

Court Observation:  “As this Court reads the RFP and the relevant clauses extracted above, it is of the firm view that none of them stood attracted in the facts of the present case. The action of forfeiture when tested on the anvil of the provisions contained in the RFP would thus clearly appear to be ultra vires.”

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Keywords

Pre-Formation Stage, Breach Of Contract