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        SEBI

        The HC partially allowed the appeal against the cancellation of...

        Court Overturns Automatic Forfeiture of EMD in SEBI E-Auction Case, Orders Reconsideration Under Rule 58 and Order XXI Rule 86

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                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.
                                The HC partially allowed the appeal against the cancellation of property sale through e-auction initiated by SEBI. While upholding the cancellation due to non-payment of balance consideration within the specified time, the HC set aside the automatic forfeiture of the entire Earnest Money Deposit (EMD). The court found that Rule 58 of the Second Schedule of Income Tax Act and Order XXI Rule 86 of CPC confer discretionary power on authorities regarding EMD forfeiture, requiring consideration of actual damages suffered. The HC directed SEBI to reconsider the extent of EMD forfeiture after providing the appellant an opportunity of hearing and to determine the appropriate forfeiture amount within 8 weeks.
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