SC Overturns Forfeiture Order; Appellant's Deposit Refunded Minus Auction Expenses Due to COVID-19 Impact.

The SC set aside the HC's order of forfeiture concerning 25% of the auction sale consideration deposited by the appellant. Due to the COVID-19 pandemic, the appellant was unable to deposit the remaining 75%. A subsequent auction confirmed no loss to the respondents. The SC directed the respondent Bank to refund the appellant's deposit, deducting a specific amount for auction expenses, within four weeks. The appeals were allowed with no costs to either party.

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Issues: Refund of auction sale consideration due to COVID-19 pandemic.

In this judgment delivered by the Supreme Court, Justices M.R. Shah and B.V. Nagarathna granted leave to hear the case. The appellant's counsel faced connectivity issues while arguing from a car, leading to the Court refusing to hear the counsel due to poor connectivity. However, in the interest of justice, the Court considered the matter on its merits and heard the respondents' counsel. The Court reviewed the impugned judgment and orders of the High Court and found that the High Court should have allowed the refund of the amount deposited, which was 25% of the auction sale consideration. The appellant had initially deposited 25% but could not deposit the remaining 75% due to the COVID-19 pandemic. Subsequently, a fresh auction took place where the property was sold, and it was confirmed that no loss was incurred by the respondents in the subsequent sale. Based on these facts, the Court set aside the order of forfeiture of 25% of the auction sale consideration and directed the respondent Bank to refund the amount deposited by the appellant, minus a specific amount towards the bank's auction expenditure, within four weeks from the judgment date. The appeals were allowed with no costs incurred by either party.

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