2021 (6) TMI 1161

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.....Sreedhar ORDER (made by the Hon-ble Chief Justice) The petitioner in either case was the highest bidder for an immovable property at an auction conducted by the respondent secured creditor under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. 2. The petitioner made the initial deposit, but cites the lockdown d....

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....orfeit the money tendered by the petitioner.  However, the law does not permit the forfeiture clause to be used as a penalty.  There may be cases where an auction purchaser has deposited 5% of the consideration and cases where an auction purchaser may have deposited 95% of the amount bid.  Just because there is a clause that permits forfeiture does not imply that the mere failure to....

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....forfeiture, unless it is a small percentage of the total consideration, cannot be well in excess of the loss or damage suffered by the party not in breach. 5. There are times that Courts presume that they have the extraordinary authority to enlarge the time.  A kind of mercy jurisdiction is also resorted to at times without the Court being mindful of the fact that the exercise of such auth....

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....sp; Despite the recent lockdown during the second surge, financial transactions continued on the net and even otherwise.  The petitioner in either case should have been aware of his obligation to make the payment within the time the payment was due and merely because the second surge hit after February 18, 2021 or the lockdown was imposed sometime thereafter is not, by itself, enough ground t....