Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Auction-Auction sale-By special Court-Challenged |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Auction - Auction sale - By special Court - Challenged - This court permitted receiving of bid but stayed acceptance thereof - Provisional acceptance of highest bid by Special court-Sale not confirmed-Thereafter order by Special Court of forfeiture of the earnest money on the ground that auction purchaser failed to deposit the balance amount within the period stipulated under terms and conditions of auction - On appeal, held: Order of forfeiture not justified - Forfeiture is permissible only when concluded contract has come into being and not prior thereto - In the present case contract cannot be said to be concluded as the sale was not sanctioned in view of the stay order of this Court-Contract Act, 1872. In the proceedings under Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992, properties of commercial and residential nature was put on auction. The validity of the auction sales were questioned. This Court allowed the auction sale in respect of commercial properties. This Court directed receiving of the two bids in respect of residential properties but acceptance thereof was stayed. Thereafter special Court provisionally accepted the bids. The same was not finalized. Thereafter when the matter came to Special Court, it held that as the auction purchaser had not deposited the balance amount within the period stipulated F under terms and conditions of the auction, the earnest money deposited by the bidder was to be forfeited. In appeal to this Court against the order of Special Court, appellants (1) highest bidder of the residential property and (2) tenants of a residential building under auction, questioned the propriety of forfeiture of earnest money. |
Judge | Hon'ble Mr. Justice S.B. Sinha |
Neutral Citation | 2007 INSC 6 |
Petitioner | Yogesh Mehta |
Respondent | Custodian Appointed Under The Special Court & Ors. |
SCR | [2007] 1 S.C.R. 62 |
Judgement Date | 2007-01-04 |
Case Number | 4512 |
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