Security Interest (Enforcement) Rules, 2002: r.9 – Interpretation of – Period of 15 days for making the deposit of remaining 75% whether would start from the date of communication of confirmation of sale or from the date of auction – Held: r.9(2) makes it clear that after confirmation by the secured creditor the amount has to be deposited – r.9(3) also makes it clear that period of 15 days has to be computed from the date of confirmation – It is only after confirmation is made under rule 9(4) that the amount has to be deposited and on failure to deposit the amount, 25% amount deposited earlier has to be forfeited and property has to be resold – In the instant case, the provisions had been fully complied with by the auction purchaser by making the deposit of 75% of the amount from the date of confirmation of sale – Sale certificate was rightly issued to the auction purchaser – Auction could not have been set aside.
As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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