Punjab National Bank Vs Union of India & Ors. — Banking and Recovery | Delhi HC (2026)

Punjab National Bank Vs Union of India & Ors. — Banking and Recovery | Delhi HC (2026)

What the court decided

AI extract

Outcome

Respondent No. 2 directed to remove the confiscated capital goods lying at Khata No. 2, Khasra No. 131, Gram Raipur, Bhagwanpur, Roorkee within two months; remaining reliefs (rent and security expenses) left to remedies available in law; pending applications disposed of.

Issue for consideration

Whether Respondent No. 2 can be permitted to keep the confiscated capital goods on the secured asset (the property whose possession the Petitioner Bank has taken under the SARFAESI Act, 2002) indefinitely, or must remove them from Khata No. 2, Khasra No. 131, Gram Raipur, Bhagwanpur, Roorkee. +1 more

Court's answer

Respondent No. 2 cannot be permitted to keep the confiscated capital goods on the secured asset indefinitely.

Ratio / Principle

Respondent No. 2 is directed to remove the confiscated capital goods lying at Khata No. 2, Khasra No. 131, Gram Raipur, Bhagwanpur, Roorkee, within a period of two months.

Key takeaways

On the remaining reliefs, including the claim for rent and recovery of security expenses, the Court did not grant relief; it shall be open to the Petitioner to avail such remedies as may be available in law.ratio¶17

Detailed headnote1 paragraphs

High Court of Delhi at New Delhi (Anil Kshetarpal & Amit Mahajan, JJ.), W.P.(C) 7620/2025, Punjab National Bank v. Union of India & Ors., order dated 17.07.2026. Capital goods lying on premises at Khata No. 2, Khasra No. 131, Gram Raipur, Bhagwanpur, Roorkee had been confiscated by the Directorate of Revenue Intelligence per Order in Original dated 19.06.2019 (Order No.02/NKU(02)ADG(Adj)/DRI/N.Delhi/2019-2020); possession of the property had been taken over by the petitioner bank under the SARFAESI Act, 2002, and the writ petition of Respondent No. 3 (the lessee) had already been dismissed on 07.05.2026. Holding that Respondent No. 2 cannot be permitted to keep the confiscated capital goods on the secured asset indefinitely, the Court directed Respondent No. 2 to remove them within two months. The remaining reliefs sought — rent from Respondent No. 3 from the NPA declaration date of 11.05.2021 and recovery of monthly security expenses of Rs 1,47,000 plus GST — were not adjudicated; the petitioner was left free to avail such remedies as may be available in law. The writ petition and all pending applications were disposed of in these terms.

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* IN THE HIGH COURT OF DELHI AT NEW DELHI

W.P.(C) 7620/2025 PUNJAB NATIONAL BANK .....Petitioner Through: Dr. Pankaj Garg, Mr. Milind Garg, Mr. Yaksh Garg, Ms. Yashna Ahuja & Ms. Muskaan Chawla, Advs.

versus UNION OF INDIA & ORS. .....Respondents Through: Mr. Vedansh Anand SPC with Ms. Nidhi Rai & Mr. Kush Garg, Advs. Mr. Anurag Ojha, SSC with Mr. Dipak Raj, Adv.

CORAM: HON'BLE MR. JUSTICE ANIL KSHETARPAL HON'BLE MR. JUSTICE AMIT MAHAJAN

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O R D E R 17.07.2026

Through the present Writ Petition, the Petitioner Bank seeks, inter

alia , the following reliefs:

“a. Issue a writ of mandamus directing the respondents, particularly the customs authorities, to remove the confiscated capital goods from the leased property i.e., Khata No. 2, Khasra No. 131, Gram Raipur, Bhagwanpur, Roorkee which were confiscated as per Order in Original dated 19.06.2019 passed by the Directorate of Revenue Intelligence being Order No.02/NKU(02)ADG(Adj)/DRI/N.Delhi/2019-2020; b. Direct the respondents to take all necessary steps to facilitate the petitioner bank's exercise of its rights under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI); c. Direct the lessee/Respondent No. 3 to pay rent to the Petitioner Bank from the date of NPA declaration, i.e. 11.05.2021 in accordance with the guarantee agreement/mortgage deed.

d. Direct that the expenses incurred by the Petitioner towards security for safeguardmg the movable assets of M/s MV Enterprises/Respondent No.3 lying on the mortgaged property, amounting to Rs 1,47,000 plus GST per month, be recoverable from Respondent No.3 or from the sale proceeds of the secured assets;”

This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 20/07/2026 at 11:47:18

It is not in dispute that the goods lying on the subject premises have already been confiscated by the Directorate of Revenue Intelligence. It is also not disputed that possession of the property, where the said goods are lying, has been taken over by the Petitioner Bank in accordance with the provisions of the SARFAESI Act, 2002.

It is further brought to the notice of this Court that the Writ Petition filed by Respondent No. 3 has already been dismissed by this Court vide order dated 07.05.2026.

In view of the aforesaid facts and circumstances, this Court is of the considered opinion that Respondent No. 2 cannot be permitted to keep the confiscated capital goods on the secured asset indefinitely. Accordingly, Respondent No. 2 is directed to remove the confiscated capital goods lying at Khata No. 2, Khasra No. 131, Gram Raipur, Bhagwanpur, Roorkee, within a period of two months from today.

Insofar as the remaining reliefs, including the claim for rent and recovery of security expenses, are concerned, it shall be open to the Petitioner to avail such remedies as may be available in law.

The Writ Petition is, accordingly, disposed of in the above terms. All pending applications, if any, also stand disposed of.

ANIL KSHETARPAL, J.

AMIT MAHAJAN, J.

JULY 17, 2026/ pd/pal

This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 20/07/2026 at 11:47:18