SYED ISRAR MASOOD, FOREST CONTRACTOR, RET GHAT, BHOPAL vs STATE OF MADHYA PRADESH

The Supreme Court held that the right to repudiate a contract and seek a refund of earnest money arises when there is a significant discrepancy in the quantity and quality of goods as represented during an auction, as per the doctrine of 'suppressio veri'. The Court found that the appellant was misled regarding the availability of forest produce, which constituted a breach of contract. Consequently, the Court allowed the appeal, reinstating the trial court's decree for recovery of the earnest money and damages.