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TMI Blog2021 (6) TMI 1161X X X X Extracts X X X X X X X X Extracts X X X X ..... and proposed to be forfeited. A forfeiture clause, at the highest, may indicate the maximum amount that may be forfeited to compensate the other party for the breach committed by the party in default. But the amount of forfeiture, unless it is a small percentage of the total consideration, cannot be well in excess of the loss or damage suffered by the party not in breach. There are times that Courts presume that they have the extraordinary authority to enlarge the time. A kind of mercy jurisdiction is also resorted to at times without the Court being mindful of the fact that the exercise of such authority may prejudice another who may not be before the Court or may amount to granting undue favour to a person merely because he has approa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (made by the Hon-ble Chief Justice) The petitioner in either case was the highest bidder for an immovable property at an auction conducted by the respondent secured creditor under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. 2. The petitioner made the initial deposit, but cites the lockdown during the second surge of the pandemic as the reason for the petitioner failing to make the balance payment. The auction sale in either case was conducted on February 18, 2021. 3. The secured creditor bank is represented. According to the secured creditor, it has authority under the relevant rules to extend time for the entire consideration to be deposited by a s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther party for the breach committed by the party in default. But the amount of forfeiture, unless it is a small percentage of the total consideration, cannot be well in excess of the loss or damage suffered by the party not in breach. 5. There are times that Courts presume that they have the extraordinary authority to enlarge the time. A kind of mercy jurisdiction is also resorted to at times without the Court being mindful of the fact that the exercise of such authority may prejudice another who may not be before the Court or may amount to granting undue favour to a person merely because he has approached the Court. If the law requires the auction purchaser to pay the entire consideration within ninety days of the date of the auction ..... X X X X Extracts X X X X X X X X Extracts X X X X
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