As per rule 9(4) balance amount of purchase price shall be paid by purchase to Authorised officer on or before 15th day from date of confirmation of sale of the immovable property or such extended period, as may be agreed upon, in writing between the purchaser and the secured creditor, in any case, not exceeding three months - on failure, deposit shall be forfeited as per rule 9(5) extension of period is not mandatory.

Citation

2018(1) CWC 912

2018-2-L.W. 568

IN THE HIGH COURT OF JUDICATURE AT MADRAS

22.3.2018/Writ Petition No.6619 of 2018

S.Manikumar, J. and V.Bhavani Subbaroyan, J.

M/s. MSKG Engineering Consultancy Services Partnership Firm rep. By its Partner - Mr.T.Mahendran No.32 Krishna Flats, 59, 1st Avenue 100 Feet Road, Ashok Nagar Chennai 83 ... Petitioner

Vs.

State Bank of India Stressed Assets Management Branch "Red Cross Buildings" 32 Red Cross Road Egmore Chennai 600 008.         ... Respondent

Security Interest (Enforcement) Rules (2002), Rule 9 (4)Auction - Non-payment of balance amount, effect of - Extension of time - whether mandatory - Forfeiture - challenge to - computation of time in rule 9, how to be madeheld: petitioner wanted refund of amount paid and sought for extension of time formaking balance payment - Action falls within the doctrine of Approbate and Reprobate

Para 18

Contention that computation of three months should be made only after the expiry of 15 days, from the date of confirmation of sale of immovable property cannot be countenanced Para 25

As per rule 9(4) balance amount of purchase price shall be paid by purchase to Authorised officer on or before 15th day from date of confirmation of sale of the immovable property or such extended period, as may be agreed upon, in writing between the purchaser and the secured creditor, in any case, not exceeding three months

Para 25

Three months time has to be computed from the date of confirmation of sale- Period for any extension of time for making payment of balance amount of the purchase price is not mandatory - Rule 9 does not mandate the Bank to agree for any extension

Para 27