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Judgment
The appellants filed SA bearing No. 338/2024 titled as M/s RDESCO Agro Foods and Others v. Punjab National Bank & Others. The appellants during the pendency of SA bearing No. 338/2024 filed an application for staying the operation of the possession notice dated 01.12.2025 issued by the Tehsildar for taking the possession on 09.01.2026 in respect of the subject Flat bearing No. C-42, 4th Floor, Uppal Marble Arch, Manimajra, Chandigarh, 160101 in pursuant of the order dated 14.10.2024 passed by the District Magistrate, Chandigarh.
DRT-II, Chandigarh vide order dated 09.1.2026 has opined that there was no ground for staying the possession notice issued by the Tehsildar, and accordingly, the application was rejected. The relevant portion of the order dated 09.01.2026 is reproduced as under:
9.To come up on 17.10.2024'. However, on 23.10.2024 Applicants moved an IA for releasing the flat. I am of the considered view that there is no force in the contention of Mr. Ratta that the flat was never given as security. In case, the Bank had released the same, Applicants should have requested the Bank to return the title-deeds to the Applicants. However, the Applicants have failed to show that they had ever made a request to the Bank to return the title-deeds. Further, when the earlier auction was cancelled by this Tribunal, Applicants never made a request for the release of the property. His request was only for the cancellation of the sale. In these circumstances, I am of the considered view that it cannot be said that the flat is not a security. That apart, the Bank had again put up the property for auction which has been again sold. Applicants have not challenged the auction. I am of the considered view that there is also no force in the contention of the Applicants that the Tehsildar cannot execute the order which was passed by the DM on 14.10.2024. This deserves to be mentioned that the Applicant himself had made a request earlier at the time of conclusion of the first auction, that he would make the payment and the order be not executed. Applicant cannot be allowed to take the advantage of his own wrong. The contention is misconceived and the same is hereby rejected. Without hearing the second Auction Purchaser, the auction cannot be set-aside. The upshot of the entire discretion is that as on date the property has been sold again by the Bank. Bank is under obligation to deliver the possession to the Auction Purchaser who is after the Bank and has filed complaints. I am of the considered view that no ground for staying the possession notice issued by Tehsildar is made out.
Accordingly, application is hereby rejected.
The appellants being aggrieved by the impugned order dated 09.01.2026 filed the present appeal. The appellants also filed a Writ Petition bearing CWP No. 11977/2026 titled as M/s RDESCO Agro Foods and Others v. Punjab National Bank & Others before the High Court of Punjab and Haryana at Chandigarh and vide order dated 21.04.2026, the High Court has given liberty to the appellants to file appropriate application for grant of interim relief before this Tribunal and simultaneously also protected the possession of the appellant till 28.04.2026. The appellants are stated to be in possession of the subject flat.
It is also stated on behalf of respondent no.4 that the sale certificate dated 31.10.2025 has already been issued in favour of respondent no.4 and the respondent no.4 has already deposited the entire auction amount with the respondent no.1 bank.
This Tribunal vide order dated 28.04.2026 has also extended the protection in terms of the order dated 21.04.2026 passed by the High Court of Punjab and Haryana at Chandigarh till today.
During the course of hearing of the present appeal, it is stated that the S.A. bearing No.338/2024 is still pending disposal before the DRT-II, Chandigarh and is listed for 15.05.2026. It is also informed by the parties that the appellants have already filed an application for implement of respondent no.4 being the auction purchaser in S.A. No. 338/2024, which is still not decided by the DRT-II, Chandigarh.
In view of the fact that the S.A. No. 338/2024 is still pending before the DRT-II, Chandigarh in which the substantial proceedings have already been commenced and progressed that it would be in the fitness of things that DRT-II, Chandigarh be directed to adjudicate and decide the S.A. No. 338/2024 titled as M/s RDESCO Agro Foods and Others v. Punjab National Bank and Another as early as possible so that ultimately rights and contentions of the parties can be decided in accordance with law.
Sh. Naveen S. Bhardwaj and Sh. Kishor Bhardawa, Counsels for the respondent no.4 also informed that the respondent no.4 also filed a Writ Petition bearing C.W.P. No.5177/2026 before the High Court of Punjab and Haryana at Chandigarh, in which, vide order dated 17.03.2026 direction was given for handover the possession of the said flat within a period of 60 days.
After considering all facts, DRT-II, Chandigarh is directed to decide the S.A. No. 338/2024 positively latest by 31.08.2026. The parties before the DRT-II, Chandigarh shall be at liberty to raise all the pleas and contentions available to them in accordance with law. It is expected that DRT-II, Chandigarh shall not grant any unnecessary adjournment to either of the parties. The Counsels for the parties in this appeal have also agreed not to seek adjournment before DRT-II, Chandigarh so that S.A. No. 338/2024 be decided without any delay. It is also made clear that any observation made in the present order shall not affect merit of S.A. No. 338/2024.
Sh. Anand Chhibbar, Sr. Advocate for the appellants stated that appellants shall not create any third party rights, title and interest whatsoever in the flat in question and shall not handover the possession of the subject flat to any other third party. It is ordered accordingly.
It is also directed that till the disposal of the S.A. No. 338/2024 in terms of this order, the respondent no.1 shall maintain the status quo regarding the possession of the subject flat.
With these observations, the present appeal stands disposed of. The date already fixed for 15.05.2026 before this Tribunal stands cancelled.
The parties are directed to appear before DRT-II, Chandigarh on the next date of hearing i.e. 15.05.2026. Copy of this order be given to all the concerned parties.
File be consigned to record room.