In Brief
A bidder won an e-auction for Rs. 1,23,00,000 and paid 25% earnest money (Rs. 30,75,000) on the same day but failed to pay the remaining 75% by the extended deadline. The Authorized Officer forfeited the earnest money and resold the property at the same price. The High Court ordered a refund, finding no loss to the bank. The Supreme Court held that forfeiture under the SARFAESI rules is a statutory penalty, not unjust enrichment. Courts must not lightly interfere with forfeiture orders absent exceptional circumstances. The special SARFAESI law prevails over general contract law. Judicial review exists only for arbitrariness or mala fides, not to protect private contractual interests at the expense of public debt recovery.
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