As per case facts a private company won an auction to buy an industrial plant from a liquidator but failed to pay the full price within the agreed deadline The ... tribunal had granted an extension but warned that any further delay would result in the forfeiture of all money already paid When the company missed the second deadline the liquidator forfeited their substantial deposit and prepared for a new auction The question arose whether a court-ordered forfeiture clause for failing to meet payment timelines in an insolvency sale can be challenged as an unfair penalty Finally the Supreme Court dismissed the appeal and upheld the forfeiture The Court ruled that the company had accepted the extension with the specific condition of forfeiture and could not later complain when that condition was enforced due to their own failure

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