As per case facts, the Petitioner invited e-tenders, and after the Respondent's bid was accepted, an agreement was signed, security deposit remitted, and a work order issued. However, the Respondent ... failed to progress the work, leading the Petitioner to terminate the contract prematurely, blacklist the Respondent, and forfeit the security deposit. The Respondent then initiated arbitration, where the Arbitrator directed the refund of the security deposit with interest and rejected the Petitioner's counter-claim. The Petitioner appealed this award to the High Court under Section 34 of the Arbitration and Conciliation Act, 1996. The question arose whether the Petitioner could forfeit the security deposit due to premature termination without proving actual loss. Finally, the High Court affirmed the Arbitrator's award, stating that premature termination does not automatically allow forfeiture of the entire security deposit. It held that the Petitioner failed to prove actual loss, upholding the refund of the security deposit and rejection of the counter-claim, dismissing the appeal with costs.