Kamal Vs Authorised Officer (DRAT Chennai)
DRAT Chennai held that rule 9(5) of Security Interest (Enforcement) Rules, 2002 empowers forfeiture of earnest money deposit when balance sale consideration is not paid within stipulated time. Accordingly, order confirmed and appeal is dismissed.
Facts- The appeal was filed against the sale held in respect of schedule mentioned property, on 29.05.2018. It is the case of the Appellant that Respondent No. 2 is the Partnership Firm, in which Respondent Nos. 3 and 4 are the partners. He mortgaged the schedule property for the loan availed by the 2nd Respondent. When the loan was defaulted, SARFAESI proceedings were initiated. In the auction sale held on 12.09.2017, the Appellant, who is the son of Respondent Nos. 3 and 4, participated in the auction, and was declared as the highest bidder and paid a sum of Rs.30 Lakhs towards the sale consideration. Since he could not pay the balance sale consideration, the property was again sold on 20.01.2018. In the said auction also, Appellant participated and was declared the highest bidder. He paid a sum of Rs.12,72,500/- towards 25% of the sale consideration. In this sale also, he could not pay the balance sale consideration, and therefore, in the third sale held on 29.05.2018, the property was sold to a 3rd party. When the Appellant paid substantial amount towards loan dues, the sale of the property is illegal, and therefore, this S.A. was filed. Learned Presiding Officer, without considering the merits of case, dismissed the S.A. and thus, this Appeal.
