Authority: Supreme Court of India

Order Date: 01-09-2026

Case Overview

  • Petitioners: Punjab Lighting Industries & Ors; Respondents: Punjab National Bank & Anr.
  • Special Leave Petition (No. 11715/2026) filed against the impugned order dated 14‑07‑2025 passed by the High Court of Punjab & Haryana, Chandigarh.
  • Background of litigation:
  • First round: Petitioners declared “fraud” under RBI Circular dated 01.07.2016 (digitally signed by Jayant Kumar Arora on 08‑09‑2026). They filed CWP 18314/2024 challenging this, which was dismissed.
  • Second round: Writ petition CWP 14968/2025 on the same ground was withdrawn.
  • Third round: Declaration of petitioners as “willful defaulter” on 26‑08‑2022 was challenged; the High Court dismissed the challenge in CWP No. 14663/2025.
  • Petitioners contended they became aware of the willful defaulter order only on 19‑05‑2025 and therefore could not challenge earlier; the High Court rejected this, finding the delay unreasonable.
  • Counsel for petitioners (Ms. Ridhi Bansal) and respondents (Mr. Sandeep Jindal) presented arguments; the Court agreed with the High Court’s reasoning.

Final Outcome

  • The Special Leave Petition is dismissed.
  • The Court clarified that the observations and findings of the High Court will have no bearing on any pending proceedings before the Debt Recovery Tribunal or any other forum; those will be decided on their own merits.
  • All pending interlocutory applications, if any, are also disposed of.

Topics: Legal Dispute, Banking