Haryana Financial Corporation & Anr vs Rajesh Gupta

The Supreme Court held that the Haryana Financial Corporation's forfeiture of Rs.2.5 lakhs earnest money from the respondent was illegal, as it failed to respond to the respondent's inquiries regarding the property and did not provide necessary information that could affect the bid. The Court emphasized that a party cannot forfeit earnest money without just cause, particularly when the other party has raised legitimate concerns about the property. The Court ordered the Corporation to refund the forfeited amount along with interest, thereby upholding the respondent's rights under contract law.