Judgment : G. MURUGESAN, J. 1. The respondent Punjab National Bank notified for sale of property in S.F. No. 416r Goundampalayam Village, Coimbatore in an extent of 1200 sq.ft. under the provisions of Securitization Act. The public auction was conducted on 24.2.2009. The petitioner was the highest bidder, who bid for a sum of Rs. 7,01,000/-. As per the terms and conditions of the sale notice, the petitioner had made a deposit of Rs. 1,75,250/- representing 25% of the bid amount so as to enable the respondent bank to consider the confirmation. On the ground that there was no confirmation and even before that, the petitioner was asked to make a further payment, of Rs. 2 lakhs which amount was paid by the petitioner on 23.3.2009. The petitioner further requested for confirmation. Nevertheless, the respondent bank has issued another paper publication on 10.2.2010 to bring the property for sale and in the meantime also passed the impugned order dated 9.12.2009 by which the entire amount of Rs. 3,75,250/- was forfeited. 2. In challenging the impugned order of forfeiture, Mr. C. Prakasam learned counsel for the petitioner would submit that as per the terms of the contract, if at all for the default committed by the petitioner in not complying with the conditions of the sale, the respondent bank would foe entitled only to forfeit 25% of the amount, deposited by the petitioner and not any further amount that was deposited subsequently. 3. On the above submission, we have heard the learned counsel for the respondent, as well. 4. Learned counsel for the respondent would rely upon the provisions of Section Rule 9(5) of the Security Interest (Enforcement) Rules 2002 and contended that any default of the payment within a period, the deposit shall be forfeited and the property could be resold. He would further submit that the same is the position as per conditions of sale. Hence, the respondent bank would be entitled to forfeit the entire amount. 5. We have carefully considered the above submissions. 6. Before we deal with the terms and conditions of the sale notice, we are inclined to consider the submissions of the learned counsel for the respondent bank on placing reliance of Rule 9(5) of the Rule. Rule 9 deals with time of sale, issue of sale certificate, delivery of possession, etc., In this context, we are inclined to refer the following rules: “9. Rule 9 deals with time of sale, issue of sale certificate, delivery of possession, etc., In this context, we are inclined to refer the following rules: “9. Time of sale, issue of sale certificate and delivery of possession, etc- (1) No sale of immovable property under these rules shall take place before the expiry of thirty days from the date on which the public notice of sale is published in newspapers as referred to in the proviso to sub-rule (6) or notice of sale has been served to the borrower. (2) The sale shall be confirmed in favour of the. purchaser who has offered the highest sale price in his bid or tender or quotation or offer to the authorised officer and shall be subject to confirmation by the secured creditor: (3) Provided that no sale under this rule shall be confirmed, if the amount offered by sale price is less than the reserve price, specified under sub-rule (5) of Rule 9: (4) Provided further that if the authorised officer fails to obtain a price higher than the reserve price, he may, with the consent of the borrower and the secured creditor effect the sale at such price. (5) On every sale of immovable property, the purchaser shall immediately pay a deposit of twenty-five per cent of the amount of the sale price, to the authorised officer conducting the sale and in default of such deposit, the property shall forthwith be sold again. (6) The balance amount of purchase price payable shall be paid by the purchaser to the authorised officer on or before the fifteenth day of confirmation of sale of the immovable property or such extended period as may be agreed upon in writing between the parties. (7) In default of payment within the period mentioned in sub-rule (4), the deposit shall be forfeited and the property shall be resold and the defaulting purchaser shall forfeit all claim to the property or to any part of the sum for which it may be subsequently sold.” (i) In terms of sub-rule (1) of Rule 9, the sale of immovable property was not to be effected before the expiry of thirty days from the date of public notice of sale in the newspaper. (ii) Sub-rule (2) contemplates the confirmation. (ii) Sub-rule (2) contemplates the confirmation. (iii) Sub-rule (3) contemplates that the purchaser should immediately pay a deposit of 25% of the amount of sale price to the authorised officer conducting the sale and in default of such deposit, the property forthwith be sold. By that rule, it is directed that the highest bidder whose bid is accepted by the respondent bank should deposit 25% of the amount of sale price immediately. That rule further authorise, the bank to bring the property for resale in the event, the highest bidder fails to deposit 25% of the amount immediately. In the event, the highest bidder deposits 25% of the amount as required to be made under sub-rule (3) of Rule 9, he would pay the balance amount of the purchase price to the authorised officer on or before 15th day of confirmation of sale of property or such extended period as may be agreed upon in writing between the parties in terms of sub-rule (4) of Rule 9. In case, no confirmation is made, the question of further payment as required under sub-rule (4) of Rule 9 does not arise. (iv) In terms of sub-rule (5) of Rule 9, in default of payment within a period mentioned in sub-rule (4), the deposit shall be forfeited and the property be resold. 7. According to the learned counsel for the respondent, by virtue of sub-rule (5) of Rule 9, in the event of the balance amount not paid by the purchaser, the respondent bank would be entitled to forfeit the entire amount either deposited or paid by the petitioner. 8. In our opinion, the said submission cannot be accepted as the Rules are very clear. The right of forfeiting the deposit amount would rise in two occasions. Firstly, on acceptance, of the bid, the purchaser should deposit 25% of the bid amount. He is obligated to pay the balance amount of 75% only after confirmation of sale. In the event, there is no confirmation, the question of payment of balance amount of 75% would not arise. 9. Admittedly, in this case, there has been no confirmation as required under sub-rule (4) of Rule 9. In that sense, as per sub-rule (5) of Rule 3, the respondent would be entitled to forfeit the deposited amount of 25% and not any amount paid over and above. 9. Admittedly, in this case, there has been no confirmation as required under sub-rule (4) of Rule 9. In that sense, as per sub-rule (5) of Rule 3, the respondent would be entitled to forfeit the deposited amount of 25% and not any amount paid over and above. Hence, the respondent bank could invoke sub-rule (5) of Rule 9 only for the purpose of forfeiture of 25% of the sale consideration alone deposited by the purchaser and not otherwise. 10. This takes us to the next contention as to the application of the terms and conditions of the sale which are as follows: “1. The asset is being sold to you “As is where is/as is what is” basis. 2. The sale price of the assets shall be Rs. 7,01,000.00 (Rupees Seven lakh one thousand only) 3. You will make 25%, i.e., Rs. 1,75,250.00 (Rupees One lakh seventy five thousand two hundred fifty only) of the sale price as initial deposit immediately. Earnest Money Deposit (EMD) will be adjusted against the initial deposit. 4. The balance payment shall be made by you on or before Wednesday 11.3.2009. 5. You will execute forthwith an agreement to sell. The possession of asset will be handed over only after payment of price. 6. In case, the payment is not made as above said, please note that, the bank shall be at liberty to forfeit the amount deposited by you (i.e., initial deposit) at the time of auction and the property shall be brought for re-auction. 7. The acceptance of the sale is subject to confirmation by the Bank as secured creditor.” 11. Condition No. 3 requires the purchaser to deposit 25% of the sale price including the Earnest Money Deposit which should be paid by the bidder even before he makes the bid. After the said payment, of course, condition No. 4 contemplates that the balance amount shall be paid by the purchaser on or before 11.3.2009. This clause should be read in consonance with sub-rule (3), (4), and (5) of Rule 9. The period fixed in that condition should be construed to mean that it should be after confirmation and not before such confirmation. In the absence of any confirmation in terms of the Rules which we have referred to above, the question of payment of balance amount of 75% would not arise. The period fixed in that condition should be construed to mean that it should be after confirmation and not before such confirmation. In the absence of any confirmation in terms of the Rules which we have referred to above, the question of payment of balance amount of 75% would not arise. In that event, the respondent bank was not right in asking the petitioner to make further payment of Rs. 2 lakhs which the petitioner had paid without, there being any confirmation. Hence, we hold that the respondent bank would be entitled to forfeit the amount representing 25% of the sale price and not more than that. To that extent, the grievance of the petitioner must be accepted. 12. Accordingly, the petition is partly allowed and the impugned order is quashed to the extent of forfeiture of the amount; of Rs. 2 lakhs which was paid by the petitioner subsequent to the deposit of 25%. The respondent bank is entitled to forfeiting the sum of Rs. 1,75,250/-. The respondent bank is further directed to refund the sum of Rs. 2 lakhs to the petitioner within a period of one month from the date of receipt of the order or production of the same by the petitioner. No costs.