State Of Maharashtra & Ors vs A.P. Paper Mills Ltd

The Supreme Court upheld the Bombay High Court's decision directing the refund of earnest money to the respondent, emphasizing that the failure to declare the final sale result within the stipulated time frame constituted a breach of contract. The Court noted that under the terms of the tender, the respondent's offer was valid for 45 days, and the delay in declaring results justified the withdrawal of the offer. The Court mandated the refund of earnest money along with interest at 6% from the date of withdrawal until payment, reinforcing principles of contract law and the obligation to act in good faith.