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Supreme Court of India 2018-03-21 allowed

Rakesh Birani (D) Through Lrs vs Prem Narain Sehgal & Anr

Bench: 2 — <UNKNOWN>, <UNKNOWN>

In Brief

An auction purchaser was the highest bidder at a property auction, making an earnest money deposit and then depositing 75 percent of the remaining amount within fifteen days of receiving written confirmation of sale from the secured creditor. The property owner challenged the auction, and lower courts set it aside, interpreting Rule 9 of the Security Interest (Enforcement) Rules, 2002 to mean that the fifteen-day payment period ran from the auction date itself. The Supreme Court allowed the appeal, holding that the fifteen-day period runs from the date of confirmation by the secured creditor, not from the auction date. Since the purchaser deposited the amount within fifteen days of receiving confirmation, he fully complied with the rules, and the sale certificate was validly issued.

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Securitisation and Reconstruction of Financial Assets Security Interest Enforcement Auction Sales Debt Recovery Civil Procedure

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