Srinagar, Aug. 19 -- Dismissing a petition filed by a contractor providing security services, a Bench of Justice Wasim Sadiq Nargal underlined that the forfeiture aligns with the established legal principles that "when a party to a tender fails to meet essential terms such as the number of manpower or timelines, the contract may be terminated, and any security deposit may be forfeited as per the agreed terms."

"Having considered the facts in detail and legal principles involved, this Court holds that the forfeiture of the security deposit cannot be construed as a penalty but is a legitimate and agreed contractual consequence of non-performance," the court said, "The Hon'ble Supreme Court, in catena of judgments has consistently affirmed ...