Saturday, March 7, 2026
Latest:
2025December 2025LatestLegalSupreme Court

Supreme Court Upholds Forfeiture of Deposit for Breach of Timelines in IBC Liquidation Sale

legaldeli

Judgment dated 10.12.2025 of the Supreme Court of India in Civil Appeal Nos.3625-3628 of 2025 of M/s. Shri Karshni Alloys Private Limited Vs.  Ramakrishnan Sadasivan

Regulation 33(2)(d) of the IBBI (Liquidation Process) Regulations, 2016

The auction of the assets  / plant at Raichur was held on 28.7.2021 with a reserve price of Rs.105 crores.  However, no bids were forthcoming on that date.

The appellant made its officer on 9.9.2021 to buy the plant as a going concern. The appellant made commitment to deposit  balance payment out of Rs.105.21 crores within 15 days from the date of receipt of sale approval by NCLT.

By the order dated 22.3.2022, the NCLT accepted the proposal.  However, the appellant was given extended time to make payment by 31.7.2022 and on failure, to forfeit the entire paid amount.

HELD that the forfeiture of the purchaser’s deposit in the liquidation sale after default in payment timelines is legal since the NCLT has authority to impose strict conditions in liquidation auctions under IBC.

You May Also Like

Bank Account – blanket freezing at the instance of police without qualifying amount and perpetually is illegal

legaldeli

No Guarantee, No Insolvency – Supreme Court Judgment of 6.1.2026.

legaldeli

Lease – Right of lessees / sub-tenants to extension and renewal after expiry of initial lease period – Section 81B of MM Corporations Act, 1949

legaldeli

Leave a Reply

Your email address will not be published. Required fields are marked *

I HAVE READ THE DISCLAIMER AND AGREE TO IT.

User Acknowledgement

By proceeding further and clicking on the "AGREE" button herein below, I acknowledge that I of my own accord wish to know more about LegalDeli for my own information and use. I further acknowledge that there has been no solicitation, invitation or inducement of any sort whatsoever from LegalDeli or any of its members to create an Attorney-Client relationship through this knowledge site. I further acknowledge having read and understood the Disclaimer below.

Disclaimer
About: This knowledge-site (www.LegalDeli.in) is owned and operated by LegalDeli (“NDA”), and is a resource for your informational and educational purposes only.

No Warranty: NDA does not warrant that any content or information contained on this knowledge-site is accurate, correct, complete or up-to-date, and hereby disclaims any and all liability to any person for any actual or threatened loss or damage caused by errors or omissions, whether such errors or omissions result from negligence, accident or otherwise. NDA assumes no liability for the interpretation and/or use of the content and/or information contained on this knowledge-site, nor does it offer any warranty of any kind, either expressed or implied in relation to such content or information.

Third-Party Links: NDA does not intend that links / URLs contained on this knowledge-site re-directing users to third party websites be considered as referrals to, endorsements of, or affiliations with any such third party website operators. NDA is not responsible for, and makes no representations or warranties, express or implied, about the content or information contained on such third party websites to which links may be provided on this knowledge-site.

No Legal Advice: By clicking ‘I agree’ and proceeding further, you acknowledge, represent and undertake that you on your own accord wish to know more about NDA, its capabilities and research content and information contained on the knowledge-site, for your own knowledge and personal use. The content and information contained on this knowledge-site should not be construed as nor relied upon as legal advice. You as a reader or recipient of content or information contained in this knowledge-site should not act, nor refrain from acting, based upon any or all of such content or information, but should always seek the advice of competent legal counsel licensed to practice the relevant law in the appropriate jurisdiction.

No Attorney-Client Relationship: This knowledge-site is not intended to be and you should not consider the content or information contained therein to be an advertisement, solicitation, inducement or invitation for an Attorney-Client relationship. Transmission, receipt or use of this knowledge-site, including content and information contained therein, does not constitute nor create an Attorney-Client relationship between NDA and you.

I Agree