In one of the Govt Tender case, the Company selected for award of contract, has not turned up to remit Security Deposit timely, So tender EMD (earnest money deposit) forefitted. So company has approched the Highcourt where its petition is dismissed. After that Comapny balcklisted for 1 year for various reasons. Now after 3 months & lapse of tender time limit, comapny is approching to remit Security deposit and showing intrest to get work and revive the Tender. So What should be the action/decision as per Indian contract Act ?
According to my opinion time is the essence of contract. Since the Company failed to EMD within the stipulated period, there is no valid contract in existance. Moreover the WP is also dismissed. You can ignore the contract.
No dout time is the essence of contract as per the Indian Contract Act., When the earnest money is forefeited, the aggreived party can file suit for earnest money within 12 years as per supreme court guidelines in a recent decision. There is no change for any person in india as per Indian Contract Act to escape the liablity for refund of earnest money.