evidence, the forfeiture of performance guarantee under Clause 18 cannot be said to be justified.
Under sub-clause (ii) the performance security could also ... whether forfeiture of security was justified or not. If one were to examine this issue it has to seen whether forfeiture of performance security
envisage any show cause notice or prior hearing be-
fore forfeiture of performance security and that the Ld. Arbitrator
has tried to rewrite the terms ... Arbitrator. Pertinently, the license deed dated
21.11.2011 provided for forfeiture of Performance Security as
Clause 3 as under:
"3. Forfeiture of Performance Security
terms of a letter
dated 27th July, 2006, and forfeiture of the performance security of
Rs.2,20,00,125/-. Termination ordered by the respondent ... bank
guarantee was not justified in the light of the forfeiture of performance
security and the amount of penalty. In any event
termination under sub-Clause
15.2 has been fixed as (1) Forfeiture of
Performance Security (2) Forfeiture of
Retention money (3) five per cent ... entitled consequent on termination under Clause 15.2
"as (1) Forfeiture of Performance Security, (2) Forfeiture of
Retention money and (3) five per cent
Contract Act applies in the present case and forfeiture of the performance security and revocation of Bank guarantee in arbitrary and unfair warranting interference
respondent failed to fulfil its obligations under
the Contract, forfeiture of Performance Security amount is a „genuine
pre-estimated liquidated Damages‟, as per Clause ... performance of its delivery obligations shall render the
supplier liable to any or all of the following sanctions:
> forfeiture of its Performance Security
impugned notice of termination
of the contract as well as forfeiture of the performance security.
8. I have perused the judgments
also failed to furnish performance security or
execute the contract. Clause 5 of the LoA mandated submission of
performance security within 28 days and execution ... Contractor
before receipt of performance security.
iii. Failure of the successful tendered to furnish the required
performance security shall be a ground for the annulment
India Institute of Medical Sciences4 , wherein it was held that
forfeiture of performance guarantee/security must bear a nexus with
the actual loss suffered. Further ... rendered in peculiar factual matrix of that case, where forfeiture
of performance security was set aside on a categorical finding that no
breach was attributable
relevant stipulations are as under :-
"2. Performance Security-The Licensee shall have to deposit
a performance security of Rs. 50,000,00/-(Rupees Fifty ... Licensee of its
belongings from the site in question.
3. Forfeiture of Performance security- The amount of
Performance Security shall be liable to be forfeited
