Procedure in default of payment
Full Text
In default of payment within the period mentioned in the last preceding rule, the deposit may, if the Court thinks fit, after defraying the expenses of the sale, be forfeited to the Government, and the property shall be re-sold, and the defaulting purchaser shall forfeit all claim to the property or to any part of the sum for which it may subsequently be sold.
Plain English Summary
Prescribes consequences of defaulting on the 75% balance: discretionary forfeiture of the 25% earnest deposit to the Government after defraying sale expenses, mandatory resale of the property, and total loss of claims by the defaulting bidder.
Key Legal Elements
- Discretionary Forfeiture: Court balances equities; can forfeit 25% deposit to Government treasury.
- Deduction of Sale Expenses: Advertising, proclamation, and commissioner fees deducted first.
- Mandatory Resale of Property: Executing court must issue directions for a fresh auction.
- Loss of Priority & Claim: Defaulting purchaser cannot claim surplus from subsequent sale.
Practical Note
Forfeiture vs. Refund of 25% Deposit: The word 'may' gives the court judicial discretion. Where the purchaser defaulted due to a genuine title defect discovered after the bid, courts frequently order a refund after deducting re-auction expenses rather than ordering forfeiture to the Government.
हिंदी पाठ
पूर्वोक्त नियम में वर्णित अवधि (15 दिन) के भीतर संदाय में चूक होने पर, यदि न्यायालय उचित समझे तो विक्रय के व्यय काटने के पश्चात बयाना जमा (Deposit) सरकार के पक्ष में समपहृत (Forfeited) किया जा सकेगा, और संपत्ति पुनः बेची जाएगी, तथा व्यतिक्रमी क्रेता संपत्ति पर या उसके बाद होने वाले किसी विक्रय मूल्य पर अपना समस्त दावा खो देगा।