Auction purchasers granted extended time to deposit balance amount after lockdown, with interest payable for the delay period.

The Supreme Court considered whether auction purchasers should receive additional time to deposit the balance amount because the COVID-19 lockdown prevented payment. In view of the earlier extensions already granted and the continuing inability to raise funds during the lockdown, further time was allowed. The period for deposit of the remaining amount was extended by two months after lifting of the lockdown, and interest at the lending rate was made payable for the period from 20.03.2020 until the date of deposit.

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Issues: Whether the time granted to the auction purchasers for deposit of the balance amount should be extended in view of the lockdown.

Analysis: The request for further time was considered against the background of the earlier extensions and the inability to raise the amount because of the ongoing pandemic and lockdown. The Court found that the lockdown had caused a disability warranting further extension. Interest at the lending rate was directed for the period from 20.03.2020 till the date of deposit.

Conclusion: The time for deposit of the remaining amount was extended for two months after lifting of the lockdown, with interest payable at the lending rate for the relevant period.

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