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Judgment
Arguments heard. The relevant facts are that the appellant had availed a loan facility from the respondent and the property bearing No.46, Block – BG, situated in the layout plan Shalimar Bagh (East), New Delhi – 110088 was mortgaged. The appellant could not stick to the financial discipline after availing the loan facility as such the account bearing no.25500000679 was declared NPA in 2019. The respondent has taken action under SARFAESI Act by issuing notices under Sections 13(2) & 13(4) of the Act.
The appellant filed S.A. bearing No. 208/2025 titled as Surinder Kumar Jain V Piramal Finance Limited & another. The appellant also filed an application bearing I.A. No. 2616/2025 during the pendency of S.A. bearing No. 208/2025 for restraining the respondent from auctioning the subject property as detailed hereinabove. DRT-I, Delhi vide impugned order dated 25.11.2025 has dismissed the said application by observing the there was no illegality or irregularity in the measures taken by the respondent FI under SARFAESI Act. The relevant portion of the impugned order is reproduced as under:
6.In the light above facts and circumstances of the case, this Tribunal is of the prima facie view that there is no illegality or irregularity in the measures taken by the respondent FI under the SARFAESI Act including notices under Section 13(2) and 13(4) and the sale notice dated 07.11.2025 and even the applicant has also not denied about the availment of the loan facility from the respondent FI. Accordingly, the prayer of the applicant for restraining the respondent FI from auctioning the property in question, which is fixed for 25.11.2025, stands rejected. All other issues shall be decided at the time of final hearing after filling the reply, rejoinder and evidences by the parties.
Sh. Mukul Bhimani, Advocate for the respondent stated that this Tribunal vide order dated 05.01.2026 stayed the proceedings stated to have been initiated by the respondent for taking over the possession of the subject property till 14.01.2026 and the said interim protection was continued thereafter. The respondent already filed a review application bearing I.A. No.69/2026 for review of the order dated 05.01.2026. The High Court of Delhi vide order dated 11.02.2026 passed in W.P.(C) 1900/2026 has expected this Tribunal to consider and decide the review application bearing I.A. No. 69/2026 on next date of hearing as expeditiously as possible in accordance with law.
The counsel for the appellant stated that the respondent while placing the subject property to sale has committed various irregularities as mentioned in the S.A. but the S.A. is now at the stage of leading evidence by the parties before the concerned DRT. It is also informed that the respondent has already auctioned the subject property but the possession thereof is still with the appellant as well as the respondent no.2, who are the borrowers.
The SA under given facts and circumstances requires expeditious disposal. Accordingly, the present appeal as well as review application bearing No 69/2026 are disposed of with the direction to DRT-I, Delhi to decide the S.A. bearing No.208/2025 on or before 30.09.2026. The appellant and the respondent no.2 who are the borrowers are also directed to maintain the status quo in respect of the subject property and shall not assign or part with the possession of the subject property to any third party. Simultaneously the respondent no.1 is also directed not to initiate any coercive action for taking possession of the subject property from the appellant and the respondent no.2 who are borrowers.