IDBI BANK LTD. versus RAMSWAROOP DALIYA AND ORS.

IDBI BANK LTD. versus RAMSWAROOP DALIYA AND ORS.

The respondents were not in default and had offered to deposit the balance sale consideration; the appellant-Bank unilaterally cancelled the confirmed auction without notice and had effectively impliedly extended time by its conduct, therefore Rule 9(4) did not operate to forfeit the respondents' rights; the High Court rightly directed issuance of the sale certificate/registering the sale deed upon deposit of the balance within four weeks.

Parties
Appellant: IDBI Bank Ltd.; Respondents Auction Purchasers: Ramswaroop Daliya and Ors.
Jurisdiction
India
Judgment Date
16 October 2024
Procedural Posture
Civil Appeal / Judgment
Outcome
Appeals dismissed
Legal Topics
E Auction, Auction Sale, Default, Balance Sale Consideration, Rule 9(4) of the Security Interest (enforcement) Rules, 2002, Natural Justice, Counter Affidavit
Security Interest (enforcement) Rules, 2002 Banking Law Property Law Civil Procedure E Auction Auction Sale Default Balance Sale Consideration +3 more

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Parties

IDBI Bank Ltd.

Appellant

Ramswaroop Daliya and Ors.

Respondents Auction Purchasers

Procedural Posture

Civil Appeal / Judgment

Legal Issues

  1. 1 Whether the respondents defaulted in depositing the balance auction amount within the time prescribed under Rule 9(4) of the Security Interest (Enforcement) Rules, 2002 so as to justify cancellation of a confirmed auction

Ratio Decidendi

The respondents were not in default and had offered to deposit the balance sale consideration; the appellant-Bank unilaterally cancelled the confirmed auction without notice and had effectively impliedly extended time by its conduct, therefore Rule 9(4) did not operate to forfeit the respondents' rights; the High Court rightly directed issuance of the sale certificate/registering the sale deed upon deposit of the balance within four weeks.

Court Disposition

Appeals dismissed

Orders

  • Civil appeals dismissed with no order as to costs.
  • Appellant directed to issue sale certificate/register the sale deed in favour of the respondents after receiving the balance auction amount of Rs. 10,650,000 within four weeks.