LINCOLN EDUCATION ACADEMY Vs. UNION BANK OF INDIA

JUDGEMENT

(1.) The petitioner is the auction purchaser of a property which featured in at least two sale notices published by the respondent Union Bank of India. The first sale notice is not part of records but the second sale notice of 4/3/2023, which admittedly is almost identical in substance to the first, is part of records. The only question which arises before the Court is whether the petitioner can be permitted to make the balance payment pursuant to being adjudged a highest bidder for the property beyond the timelines contemplated under Rule 9(4) and (5) of the Security Interest Enforcement (Rules), 2002.

(2.) Rule 9(3) requires a purchaser to deposit 25% of the amount of the sale price which includes earnest money in terms of the sale of immovable property on the same day or not later than the next working day. The petitioner admittedly paid this amount on 18/11/2022. The issue is whether the petitioner can be permitted to pay the balance 75% after expiry of the timelines under Rule 9(4) which mandates that the balance amount shall be paid by the purchaser to the authorized officer on or before the fifteenth day of confirmation of sale or such extended period as may be agreed upon in writing between the purchaser and the secured creditor but not exceeding three months. The petitioner has admittedly crossed the three months window by a considerable period of time.

(3.) According to learned counsel appearing for the petitioner, the petitioner was discouraged from paying the balance 75% in terms of Rule 9(4) of the 2002 Rules by several subsequent events.