Punam Devi vs State Bank Of India & Ors.

The appellant has filed S.A. bearing No. 198/2026 titled as Punam Devi v. State Bank of India and others which is stated to be pending before DRT-II, Delhi. The appellant filed an application bearing I.A. 1440/2026 for restraining the respondent bank from selling the subject property and also further direct the respondent bank to handover physical possession back to the appellant. The DRT-II, Delhi vide impugned order dated 01.06.2026 has dismissed the I.A. bearing No. 1440/2026. The appellant being aggrieved filed the present appeal.

Sh. Amarjeet Singh Sahni, Counsel for the appellant stated that the appellant is the victim of fraud committed by the alleged owner of the subject property and she had paid entire sale consideration to the seller and thereafter, had taken the loan from bank/Financial Institution. In these circumstances, prayer that the physical possession of the subject property i.e. third floor without roof/terrace rights admeasuring 50 sq. yds. forming part of property bearing No. T-60 situated in the area of Village Khayala Colony known as Vishnu Garden, New Delhi be protected and should not be handed over to any third party including the intending purchaser.

Sh. Ravi Agrawal, Counsel for respondent no.1 bank stated that the physical possession of the subject property is already taken and the respondent no.1 bank is contemplated to put the subject property on auction in accordance with law.

The appellant is neither the borrower nor the mortgagor of the subject property. The appellant claimed to be the bona fide purchaser of the subject property. The respondent no.1 bank has already taken over the possession of the subject property. In these circumstances, the respondent bank may proceed with the sale/auction of the subject property but shall not handover the physical possession of the subject property to the auction purchaser till the disposal of S.A. bearing No. 198/2026.

The concerned parties shall be at liberty to raise all pleadings and contentions available with them in accordance with law before the DRT-II, Delhi. The present appeal along with pending application, if any, is accordingly disposed of.

It is expected that the DRT-II, Delhi shall dispose of S.A. bearing No. 198/2026 in accordance with law expeditiously and without any unnecessarily delay preferably on or before 31.12.2026. It is also expected from the respective Counsels for the parties that they shall not seek any adjournment without justified reason.

The copy of this order be sent to DRT-II, Delhi for information and compliance.