Rule 86 of CPC : Rule 86: Procedure in default of payment.

Explanation using Example

Example 1:

Scenario: Ramesh wins a court auction for a piece of land and is required to pay the full amount within 30 days.

Application of Rule 86: Ramesh fails to make the payment within the 30-day period. The court decides to forfeit the deposit Ramesh made during the auction process to the Government. The court then orders the land to be re-sold in another auction. Ramesh loses all claims to the land and any money he might have paid beyond the deposit.

Example 2:

Scenario: Sita bids on a commercial property in a court-ordered auction and wins, with a requirement to pay the full amount within 45 days.

Application of Rule 86: Sita is unable to arrange the funds within the 45-day period. The court, after deducting the expenses of the auction, forfeits Sita's deposit to the Government. The commercial property is then put up for auction again. Sita loses any right to the property and any part of the amount for which it may be sold in the future.