STATE OF KERALA vs COCHIN CHEMICAL REFINERIES LTD.

The Supreme Court held that a mortgage deed does not become void due to the mortgagee's failure to advance the agreed loan amount. The Court found that the obligation of the State to purchase goods from the company was not contingent upon the loan being advanced. The State's failure to advance the loan does not relieve it of liability to perform its contractual obligation to purchase the goods, and the injured party may choose to insist on performance despite the breach. The appeal was dismissed, affirming the lower court's decision to award damages for breach of contract.