RAJASTHAN CO-OPERATIVE DAIRYFEDERATION LTD. vs SHRI MAHA LAXMI MINGRATE MARKETINGSERVICE PVT. LTD & ORS.

The Supreme Court held that the revocation of the Letter of Intent issued by the Rajasthan Co-operative Dairy Federation Ltd to respondent No.1 was valid as the respondent failed to fulfill the conditions precedent, including the submission of an irrevocable bank guarantee of Rs.15 lacs and the profit and loss account. The Court emphasized that a Letter of Intent does not create a binding contract until the conditions are met and the formal agreement is executed. The High Court's decision to allow the writ petition was set aside, affirming the appellant's right to revoke the Letter of Intent due to non-compliance with stipulated obligations.