https://www.taxtmi.com/caselaws?id=449140 Forfeiture of earnest money in a SARFAESI public auction under Rule 9(5) is a statutory consequence on default in payment of the balance sale price, and the compensatory principles in Sections 73 and 74 of the Contract Act do not restrict that express forfeiture. The forfeiture is judged by the statutory scheme and the circumstances at the time of default, not by a later resale or higher recovery, so it is not reduced to the secured creditor's actual loss or debt outstanding. Interference is warranted only in very rare exceptional circumstances, and none was shown. The forfeiture was therefore upheld. en-us Fri, 02 Feb 2024 00:00:00 +0530 Fri, 26 Jun 2026 14:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=449140 Forfeiture of earnest money in a SARFAESI public auction under Rule 9(5) is a statutory consequence on default in payment of the balance sale price, and the compensatory principles in Sections 73 and 74 of the Contract Act do not restrict that express forfeiture. The forfeiture is judged by the statutory scheme and the circumstances at the time of default, not by a later resale or higher recovery, so it is not reduced to the secured creditor's actual loss or debt outstanding. Interference is warranted only in very rare exceptional circumstances, and none was shown. The forfeiture was therefore upheld. Case-Laws Indian Laws Fri, 02 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=449140