State Of Karnataka And Ors vs Saveen Kumar Shetty

The Supreme Court held that the forfeiture of the deposit made by the respondent under Rule 13(1) of the Karnataka Excise (Lease of Right of Retail Vend of Liquors) Rules, 1969 was justified due to the respondent's failure to furnish the required security and execute the lease deed. The Court emphasized that the cancellation of the bid was not automatic but contingent upon the non-compliance with the rules. The Court upheld the High Court's decision to allow the Government to reconsider the forfeiture after providing an opportunity for hearing to the respondent, thereby setting aside the Division Bench's order.