STATE OF GUJARAT vs DAHYABHAI ZAVERBHAI

The Supreme Court held that the contractor abandoned the work under the contract, justifying the forfeiture of the security deposit as per Clause 3 of the contract. The Court found that the contractor was given sufficient time to complete the work but failed to do so, leading to the revocation of the contract by the Executive Engineer. The Gujarat High Court's direction to refund the security deposit was overturned, affirming the validity of the forfeiture due to abandonment of work.