[SARFAESI Act] Forfeiture Of Earnest Money Is Statutory Consequence If Auction Purchaser Fails To Deposit Balance Within Time: Karnataka HC

The Karnataka High Court upheld the forfeiture of an earnest money deposit by an auction purchaser who failed to complete the purchase. The court ruled that the forfeiture was justified as the purchaser did not fulfill the terms of the auction agreement. The case involved a bidder who won an auction for a property but later failed to make the full payment within the stipulated time. The court found that the forfeiture clause in the auction agreement was valid and enforceable, and the purchaser’s failure to comply with the terms justified the forfeiture. The judgment reinforces the importance of adhering to contractual obligations in auction transactions.