Strict compliance with auction-sale challenge rules bars redemption after delay and failure to make the mandatory deposit.

Where the Second Schedule recovery procedure applies under the 1993 recovery law, a challenge to a completed auction sale must comply strictly with the 30-day limit and the statutory deposit requirement under Rule 61. The petitioner sought redemption after the prescribed period without making the mandatory deposit in time, so the claim was not legally sustainable. As the auction purchaser had already participated in the sale and paid the consideration, the purchaser's rights could not be displaced by an out-of-time and non-compliant application. The petitioner therefore had no enforceable right to redeem the mortgaged property.

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Issues: Whether the petitioner could seek redemption of the mortgaged property after auction sale without complying with the time limit and deposit requirement under the applicable recovery rules.

Analysis: The property was sold in execution proceedings under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, and the procedure under the Second Schedule to the Income-tax Act, 1961 applied by virtue of section 29. Under Rule 61, a person seeking to set aside the sale had to move within 30 days from the date of sale and satisfy the statutory deposit condition. The petitioner filed the redemption application long after the prescribed period and did not comply with the mandatory deposit requirement within time. The auction purchaser had already participated in the sale and the sale consideration had been paid, so the purchaser's rights could not be displaced in the absence of any legally sustainable challenge within the prescribed framework.

Conclusion: The petitioner had no enforceable right to redeem the property, and the auction purchaser was entitled to retain the benefit of the sale.

Ratio Decidendi: Where the Second Schedule recovery procedure applies, the right to set aside a completed auction sale is strictly conditioned by the statutory limitation period and deposit requirement, and non-compliance defeats the claim for redemption.

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