Auction Sale Under SARFAESI Act -- Shortfall in Earnest Money Deposit -- Not fatal where 25% of sale price deposited on day of auction
Security Interest (Enforcement) Rules, 2002, R.9(3) -- Auction Sale Under SARFAESI Act -- Shortfall in Earnest Money Deposit -- Loses significance once the auction purchaser deposits twenty-five percent of the sale price on the same day of auction as statutorily required. Substantial compliance with the essential conditions of the auction notice is sufficient, and an anterior shortfall in the earnest money deposit causing no prejudice to other bidders or the borrower does not affect validity of the bid. Such shortfall cannot be a ground to set aside the auction sale.
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