VidhiSangh

Supreme Court of India · 05/01/2021

M/S. PADIA TIMBER COMPANY (P) LTD. versus THE BOARD OF TRUSTEES OF VISAKHAPATNAM PORT TRUST THROUGH ITS SECRETARY

[2021] 1 S.C.R. 229 · 2021 INSC 5

AI-generated headnote. Verify against the judgment before relying on it. Paragraph numbers refer to the judgment.

Summary

The Court held that the Port Trust’s purported acceptance, which added a final-inspection condition rejected by the supplier, did not create a concluded contract. It set aside the damages decree and dismissal of the supplier’s refund suit, directing repayment of the earnest deposit with interest.

Issues

  1. Whether acceptance of a conditional offer with a further condition created a binding contract without the original proposer’s assent.
  2. Whether the Port Trust could recover damages or retain the earnest deposit in the absence of a concluded contract.

Provisions considered

Held

Result

Appeal allowed; High Court and trial court judgments in both suits set aside. Earnest deposit to be refunded within four weeks with 6% annual interest from institution of the refund suit until payment; no costs.

Judgment PDF: Supreme Court of India, [2021] 1 S.C.R. 229.