Earnest money forfeited as per terms of tender for not entering into contract can not be refunded – SC

State of Haryana & Ors. Vs. M/s. Malik Traders (Supreme Court of India)- A person may have a right to withdraw his offer but if he has made his offer on a condition that some earnest money will be forfeited for not entering into contract or if some act is not performed, then even though he may have a right to withdraw his offer, he has no right to claim that the earnest/security be returned to him. Forfeiture of such earnest/security, in no way, affects any statutory right under the Indian Contract Act. Such earnest/security is given and taken to ensure that a contract comes into existenc...