Authority: Supreme Court of India

Order Date: 31-08-2026

Case Overview

  • Petitioners: N. Kasinathan & Ors., auction purchasers.
  • Respondents: Vijayakumar & Ors., guarantors to a loan taken by respondent No.5 from respondent No.4.
  • The Special Leave Petition (C) No.20529/2018 arose from an auction sale contested by respondents Nos.1‑3; during proceedings respondents Nos.1 and 3 died, and respondent No.2, the sole surviving legal heir, was substituted.
  • The impugned order dated 05.01.2018 had set aside the auction sale and directed respondents Nos.1‑3 to deposit the entire auction sale amount with interest before the executing firm.
  • Parties subsequently entered into a settlement: respondent No.2 will pay Rs 12,50,000 to the auction purchasers, of which Rs 1,00,000 has already been paid.
  • Additionally, Rs 5,79,000 (plus accrued interest) deposited with the executing court is to be released to the petitioners.
  • Respondent No.2 undertook to pay the balance Rs 5,71,000 within two weeks of the order.

Final Outcome

  • The Court recorded the settlement report dated 21.08.2026, found it lawful, and bound the parties to its terms.
  • The executing court is directed to release the full amount deposited (Rs 5,79,000 plus interest) to the petitioners.
  • The executing court shall issue a certificate allowing respondent No.2 to claim a refund of stamp duty as per paragraph 38(e) of the impugned order.
  • The petitioners are granted leave to withdraw the Special Leave Petition; the petition is disposed of.
  • Any pending applications, if any, are also disposed of.

Topics: Court Settlement, Auction Dispute, Fund Release