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IN THE HIGH COURT OF DELHI AT NEW DELHI
SANJEEV NARULA
Salasar E-Waste LLP – Appellant
Versus
Dy Cmm Northern Railway – Respondent
| Table of Content |
|---|
| 1. challenge to emd forfeiture based on auction rules. (Para 1 , 2 , 3) |
| 2. arguments on payment timelines and extensions. (Para 4 , 5) |
| 3. court's analysis on payment obligations. (Para 6 , 8 , 9) |
| 4. interpretation of contract clauses on payment. (Para 7) |
| 5. enforcement of contractual timelines and obligations. (Para 10 , 11) |
| 6. final dismissal of the petition. (Para 12) |
JUDGMENT :
SANJEEV NARULA, J.
1. The Petitioner, through the instant petition, challenges the forfeiture of the Earnest Money Deposit,, [“EMD”] made in connection with an E-auction conducted on www.ireps.gov.in for the Shakur Basti Depot. This auction was conducted by Respondent No. 1 under the instructions of the Controller of Stores, Northern Railway, for the sale of “Cond and Scrap all types of secondary cells in bakelite bodies, of various sizes and makes, both broken and unbroken, on an ‘as is where is’ basis.” The Petitioner participated in the auction and emerged as the successful bidder. Pursuant thereto, a bid sheet was issued on 10th January, 2022, outlining the terms of the transaction:
2. The total sale value of the auction was declared as INR 16,20,751.83. The Petitioner deposited INR 1,60,185 as
Participants in an auction must adhere strictly to payment timelines; forfeiture of the Earnest Money Deposit is justified for failure to comply with clearly defined contractual terms.
Auction /Bid - Bidders participating in the tender process have no other right except the right to equality and fair treatment in the matter of evaluation of competitive bids offered by interested pe....
Under the Enforcement Rules, a period of 15 days is prescribed for payment of the balance sale consideration. Rule 9(4) of the Enforcement Rules after its amendment with effect from mandated that any....
The court upheld the forfeiture of a deposit by a bank as permissible under Rule 9(5) of Security Interest (Enforcement) Rules, due to the petitioner's default in timely payment.
The excess amount paid by the petitioner, beyond 25% of the bid amount, could not be considered as a deposit under Rule 9, and any retention of amount by the respondent without authority of law would....
The court upheld that failure to remit the full auction amount leads to the lawful forfeiture of the deposit as per applicable rules.
The Liquidator's authority to forfeit EMD in liquidation auctions is valid if terms specified in the Auction Memorandum are clear and accepted by bidders; forfeiture must comply with applicable regul....
Writ court declines jurisdiction over SARFAESI auction disputes with factual issues; directs to DRT under Section 17.
Presence of an arbitration clause would oust jurisdiction under Article 226.
Parties are bound by the explicit terms of the tender document, and requests for extensions are invalid if they contravene such conditions.
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