Deposit by purchaser and re-sale on default
Full Text
(1) On every sale of immovable property the person declared to be the purchaser shall pay immediately after such declaration a deposit of twenty-five per cent on the amount of his purchase-money to the officer or other person conducting the sale, and in default of such deposit, the property shall forthwith be re-sold.
(2) Where the decree-holder is the purchaser and is entitled to set-off the purchase-money under rule 72, the Court may dispense with the requirements of this rule.
Plain English Summary
Mandates that the successful bidder in an immovable property auction must immediately deposit 25% of the purchase price on the spot, failing which the officer has no discretion and must re-auction the property forthwith.
Key Legal Elements
- Mandatory 25% Spot Deposit: Payable immediately upon declaration of highest bid.
- Strict 'Forthwith' Re-sale Mandate: Auctioneer cannot grant time or accept post-dated cheques.
- Decree-Holder Set-Off Exemption (Sub-rule 2): Court may dispense with 25% if covered by decretal set-off.
- Non-Compliance Renders Sale Void: Absolute nullity if 25% is not deposited on the same day.
Practical Note
The Absolute Strictness of the 25% Deposit Rule: 1. Landmark Authorities - Manilal Mohanlal Shah v. Sardar Sayed Ahmed Sayed Mohamed (1955) 1 SCR 108 & Balram v. Ilam Singh (1996) 5 SCC 705: The Supreme Court authoritatively settled that Rules 84 and 85 are mandatory and non-negotiable. The 25% deposit must be paid immediately on the fall of the hammer. The court or auctioneer has NO jurisdiction to extend time for the 25% deposit even by a single day. If not deposited on the day of sale, the sale is a non-est nullity and does not even require an application under Rule 90 to set aside! 2. Bidding Advice: Ensure auction participants bring pre-prepared Demand Drafts or guaranteed banking funds.
हिंदी पाठ
(1) स्थावर संपत्ति के प्रत्येक विक्रय में वह व्यक्ति जो क्रेता घोषित किया जाता है, ऐसी घोषणा के तुरंत पश्चात अपने क्रय-धन की पच्चीस प्रतिशत (25%) राशि विक्रय संचालित करने वाले अधिकारी को तुरंत जमा करेगा, और ऐसे जमा में चूक होने पर संपत्ति तुरंत पुनः बेची जाएगी (Forthwith be re-sold)।
(2) जहां डिक्रीदार क्रेता है और नियम 72 के अधीन क्रय-धन को मुजरा (Set-off) कराने का हकदार है, वहां न्यायालय इस नियम की अपेक्षाओं से छूट दे सकेगा।