PNB to Hand Over Secured Asset

Authority: High Court of Judicature at Bombay

Order Date: 7 October 2026

Parties: Petitioners – Kishore Shantilal Gandhi & Ors. (auction purchasers); Respondent – Punjab National Bank.
Background: The auction purchasers obtained a sale certificate for the secured asset on 23 Nov 2020, which was duly registered.
Borrowers’ Litigation History: Borrowers challenged the bank’s actions before the Debts Recovery Tribunal (DRT) and the Debts Recovery Appellate Tribunal (DRAT); both challenges were dismissed. They subsequently filed Writ Petition No. 9746 of 2026 in this Court, which was rejected for interim relief on 2 Sep 2026 and again on 9 Sep 2026.
Supreme Court Intervention: On 21 Sep 2026, the Supreme Court disposed Special Leave Petition 33254 of 2026, directing that the petitioners could obtain interim relief only upon depositing Rs 3 crore with the Bombay High Court Registry. The borrowers failed to make this deposit.
Possession Status: In the absence of any interim injunction, the bank took physical possession of the secured asset on 9 Sep 2026.
Bank’s Statement: The bank indicated that certain belongings of the borrowers remain inside the secured asset and will be removed to a warehouse.
Procedural Note: The borrowers are not required to be parties to the present writ petition as their own writ (No. 9746 of 2026) is pending before this Court.

The High Court directs Punjab National Bank to hand over physical possession of the secured asset to the petitioners (auction purchasers) within one week from the date of this order.
The bank shall remove the borrowers’ belongings from the asset, store them in a warehouse, and issue a notice to the borrowers to collect their belongings.
No further postponement is ordered; the borrowers will be heard in their own pending writ petition.

Topics: Court Order, Secured Asset Transfer