IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE J.B.KOSHY & THE HONOURABLE MR. JUSTICE A.K.BASHEER TUESDAY, THE 11TH MARCH 2008 / 21ST PHALGUNA 1929 Co.Appeal.No. 25 of 2005() -------------------------- AGAINST THE JUDGEMENT/ORDER IN Co.A.198/2005 in CP.18/1999 Dated 25/08/2005 .................... APPELLANT/APPLICANT: ------------------------------ STAR HOMES, REPRESENTED BY ITS MANAGING PARTNER, AJAY VARGHESE GEORGE, STAR HOMES HOTELS, CHERUPARAMBATH ROAD, KADAVANTHARA, COCHIN-20. BY ADV. SMT.ROSAMMA MATHEW RESPONDENT/RESPONDENT: --------------------------------- ST. MARY'S FINANCE LTD. (IN LIQUIDATION) REPRESENTED BY THE OFFICIAL LIQUIDATOR, HIGH COURT OF KERALA, OFFICE AT COMPANY LAW HOUSE, B.M.C. ROAD, COCHIN-21. BY ADV. SRI.C.KHALID THIS COMPANY APPEAL HAVING BEEN FINALLY HEARD ON 11/03/2008, THE COURT ON THE SAME DAY PASSED THE FOLLOWING: J.B.KOSHY & A.K.BASHEER, JJ. ==================== Co.Appeal.No.25 of 2005 ====================== Dated this the 11th day of March, 2008 JUDGMENT J.B.KOSHY,J. The appellant was an auction purchaser of a property who purchased the property from the Official Liquidator of a company under liquidation. He also provided an earnest money of Rs.1,00,000/-. The amount granted was 35,26,000/- as consideration for the property. Clause 10 of the tender provides that the tenderer whose bid is accepted shall pay the full amount within one month from the date of confirmation of the sale, failing which the earnest money deposited would be forfeited. The sale was confirmed on 22.2.2003. Since the amount was not deposited within the prescribed time, the property was re-auctioned on the basis of the tenders and the earnest money deposited was forfeited. The contention of the appellant is that the property was sold for Rs. 40,00,000/- and the company is not put to a loss on account of his non remittance of the balance amount and Co.Appeal.No.25 of 2005 2 therefore after taking the re-advertisement expenses, balance earnest money shall be released to him. He further contended that he was ready to pay the balance amount but there was some dispute regarding the property at the time of auction itself and the official liquidator should have checked whether there was encroachment or not. But he bid in the auction with a condition that if the balance amount is not paid, the earnest money paid will be forfeited. Accordingly the earnest money deposited was forfeited. The company judge considered the matter in detail and we agree with his views. There is no need of interference by this Court. Hence, this appeal is dismissed. J.B.KOSHY,JUDGE A.K.BASHEER,JUDGE dvs