STATE OF KARNATAKA vs SAVEEN KUMAR SHETTY

The Supreme Court addressed the cancellation of a bid for retail vend of arrack under the Karnataka Excise (Lease of Right of Retail Vend of Liquors) Rules, 1969. The Court held that the forfeiture of the deposit under Rule 18 is not automatic and requires due process, including an opportunity for the bidder to be heard. The Court set aside the High Court's decision and directed the Government to reconsider the forfeiture after providing a hearing to the respondent, thereby emphasizing the necessity of procedural fairness in administrative actions.