Contractual forfeiture in e-auction defaults upheld where bidder missed payment deadline and auction terms provided complete forfeiture.

A bidder who accepts e-auction terms unconditionally is bound by the forfeiture clause if the balance sale consideration is not paid within the stipulated or extended time. Here, the tender conditions and success intimation expressly provided that default would result in complete forfeiture of the EMD and further payments, with the property to be sold afresh. Because the bidder failed to comply while the next highest bidder paid and completed the purchase, the Liquidator was entitled to act under the auction terms and forfeit the entire deposited amount. The refund request was therefore rejected on merits.

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Issues: Whether the Liquidator was entitled to forfeit the entire amount deposited by the highest bidder on default in payment of the balance sale consideration.

Analysis: The bidder had accepted the tender terms and conditions unconditionally, including the clause that failure to comply with the payment schedule would result in forfeiture of the amounts deposited and sale of the property afresh. The intimation of success in the e-auction also made clear that non-compliance would attract complete forfeiture of the EMD and further payments received. The bidder failed to pay the balance within the extended time granted, while the next highest bidder paid within time and completed the purchase. In these circumstances, the Liquidator acted within the contractual terms governing the auction.

Conclusion: The Liquidator was justified in forfeiting the entire amount deposited by the bidder, and the request for refund of the balance amount was rejected.

Final Conclusion: The application failed on merits because the bidder's default attracted the agreed consequences under the auction terms.

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