Lonavala Construction Company Thr Its Partner v. the State of Maharashtra Thr Urban Department and Anr.
Case brief
What is this about?
earnest deposit forfeiture Clause 17; audit objections raised after contract completion; retention of Rs.29,07,581/- and Rs.6,26,265/- without quantification unjustified; Lonavala Municipal Council; State instrumentality cannot act high-handedly; quashing of communication dated 1st October 2025; release of withheld deposit and security deposit within 30 days with 5% simple interest fallback; Maharashtra civil writ petitions 16206 and 16207 of 2025.
What did the court decide?
Communication dated 1st October, 2025 quashed and set aside in Writ Petition No.16206 of 2025; Writ Petition No.16207 of 2025 disposed off with common directions; Municipal Council directed to release the withheld earnest deposit and security deposit amounts within 30 days, failing which simple interest @ 5% per annum payable for a further period of 30 days; Petitioner's liberty reserved to deal with any future duly quantified recovery demand.