In Brief
IDBI Bank conducted an auction of property on 10 April 2018 at which the respondents were the highest bidders (Rs 1,42,50,000). They deposited 25% on the auction day but later could not deposit the balance within 15 days due to the Bank's refusal based on a CBI complaint and ED advisory. The Bank unilaterally cancelled the auction in December 2019 without notice. The High Court allowed the respondents' writ petition, directing issuance of the sale certificate upon deposit of the balance amount. The Supreme Court upheld this, holding that Rule 9(4) applies only to purchaser default, not where the auctioneer refuses to accept payment. The time limit is extendable by written consent and was implicitly extended here. The unilateral cancellation without notice violated natural justice principles.
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