Authority: High Court of Odisha at Cuttack
Order Date: 12 August 2026
Case Overview
- Petitioner: Abhisek Agrawal (represented by Ms. Sanjibani Mishra on behalf of Mr. Kousik Ananda Guru) versus Authorized Officer, Punjab National Bank, Sambalpur.
- The petitioner had taken a loan from PNB and pledged a secured asset. On 18 May 2025 the bank issued a notice under Section 13(2) of the SARFAESI Act; subsequently a notice under Section 13(4) was issued and possession was symbolically taken over.
- The petitioner filed an application under Section 17 of the SARFAESI Act before the Debt Recovery Tribunal (DRT) Odisha, Kataka (S.A. No. 25 of 2026) and also an interim application IA 1334 of 2026 in the same proceeding. The bank repeatedly sought adjournments and, without participating in the Section 17 proceeding, proceeded to auction the asset and issued a notice dated 7 July 2026 (Annexure‑8) demanding peaceful possession.
- The bank contends that the auction followed due procedure and a sale certificate has been issued to the successful bidder. The petitioner argues that the auction was improper while the Section 17 application was pending, leaving him remediless.
Final Outcome
- The Court directs the DRT to hear IA 1334 of 2026 expeditiously, preferably by 31 August 2026, and to deny any further adjournments while the application is being considered.
- The Tribunal is also free to take up the original application (O.A. No. 296 of 2026) and the Section 17 proceeding (S.A. No. 25 of 2026).
- No coercive measure pursuant to Annexure‑8 shall be taken by the bank until the interim application is disposed.
- The writ petition is disposed of. An urgent certified copy of the order may be granted on proper application.
Topics: Banking Regulation, SARFAESI Act, Court Order