Supreme Court: ₹35,000 EMD shortfall doesn't vitiate auction sale if 25% paid on auction day
The case concerns a dispute over the validity of an auction sale of a secured asset under the SARFAESI Act, specifically whether a minor shortfall in the Earnest Money Deposit (EMD) submitted by the successful bidders vitiates the sale when they paid 25% of the sale price on the auction day.
Appellants: Lakshmi Mohan (Dead) through Legal Representatives (Auction Purchasers), M/s. Airtech Projects Engineers Pvt. Ltd. (Borrower), and The Chief Manager and Authorized Officer (Bank). Respondents: M/s. Airtech Projects Engineers Pvt. Ltd., Mrs. Lakshmi Mohan (Dead) through Legal Representatives, and M/s Airtech Projects Engineers Pvt. Ltd. & Ors. Bench: Justice Alok Aradhe.
- Delay in filing the appeals was condoned.
- Leave was granted in both Special Leave Petitions.
- The Court noted that the appeals impugned a common judgment dated 22.03.2013 by the High Court of Judicature at Madras.
- The Court analyzed the distinction between essential conditions of eligibility and ancillary conditions in tender notices.
- The Court cited the legal principle that non-conformity with prescribed standards does not invalidate a tender if it does not result in substantial prejudice or injustice to any party or public interest.
Written from the document by AI, and checked against it. The original below is authoritative.
The original document
Document details
| Official title | SARFAESI | Earnest Money Deposit Shortfall Doesn't Vitiate Sale If 25% Sale Price Paid On Auction Day : Supreme Court |
| Source body | Supreme Court of India — orders & judgments |
| Reference number | — |
| Status | closed (order) |
| Year | 2026 |
| Closing date | — |
| Documents | 1 |