Mary vs State Of Kerala & Ors

The Supreme Court held that under Rule 5(19) of the Kerala Abkari Shops (Disposal in Auction) Rules, 1974, the appellant's deposit of Rs.7,68,600/- was intended as security for the performance of the contract, which became impossible due to public opposition to the operation of the arrack shops. The Court ruled that the appellant's request to rescind the contract was valid given the circumstances, and thus, she was entitled to a refund of her deposit. The judgment of the Kerala High Court was set aside, and the appellant's claim for refund was upheld.