THE STATE OF BIHAR vs M. HOMI AND ANOTHER.

The Supreme Court ruled that provisions in a surety bond that are penal in nature must be strictly construed, as established under Article 134(1)(c) of the Constitution. The Court held that the sureties were not liable for the penalty since the conditions of the bond were not met, specifically that the judgment of the Federal Court could not be deemed equivalent to the judgment contemplated in the bond. Consequently, the proceedings against the sureties were deemed misconceived and were dismissed.