STATE OF MAHARASHTRA vs A.P. PAPER MILLS LTD.

The Supreme Court upheld the Bombay High Court's decision directing the refund of earnest money forfeited by the appellants, emphasizing that the respondent's offer was valid for 45 days as per the tender conditions. The Court found that the appellants failed to declare the final sale result within the stipulated time, thus justifying the respondent's withdrawal of the offer and entitlement to a refund. The Court mandated the refund along with interest at 6% from the date of withdrawal until payment, reinforcing the principle that failure to adhere to tender conditions can result in the forfeiture of the right to retain earnest money.