Successful Bidder has to comply with the payment of the balance sale price within the time contemplated under Security Interest (Enforcement) Rules, 2002 and in cases where the purchaser has defaulted in payment, the initial deposit of 25% made shall stand forfeited – B. Pradish Kumar Vs. Canara Bank and Anr. – Madras High Court
August 8, 2024
Hon’ble Madras High Court held that Rule 9 of the Security Interest (Enforcement) Rules, 2002 (the SARFAESI Rules) deals with respect to the time of sale, issue of sale certificate and delivery of possession etc. and particularly, as per Rules 9(4) and 9(5) of the SARFAESI Rules, the balance amount of purchase price payable by the purchaser shall be paid on or before 15th day of confirmation of sale of the immovable property or within such extended period which in any case cannot exceed three months. In default of the payment, 25% of the deposit already made shall be forfeited by the Bank/secured creditor and the property shall be resold.
The purchaser has to comply with the payment of the balance sale price within the time contemplated under Rule ie., 15 days from the date of confirmation or within the period as extended by the secured creditor Bank, which in any case cannot be beyond 90 days and in cases where the purchaser has defaulted in payment, the initial deposit of 25% made shall stand forfeited.
