Disposed

State Bank of India v. Punjab National Bank

DRT14 Jul 2025SA/250/2025

Case brief

AI extract

What is this about?

This judgment addresses a dispute between two banks over a mortgaged property. The court held that a dispute regarding security interest between banks is arbitrable under the Arbitration and Conciliation Act, rendering SARFAESI action un maintainable. It directed a status quo on the property and referral to arbitration.

What did the court decide?

Status quo maintained regarding flat no. A/3 in Janani Appartment; parties directed to go for arbitration.

State Bank of India versus Punjab National Bank — Company and Corporate | DRT (2025)

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DEBTS RECOVERY TRIBUNAL 1, KOLKATA

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Order Sheet (continuation)

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Case No.SA/	250/2025 STATE BANK OF INDIA Vs PUNJAB NATIONAL BANK	Office action with
Date of the Order	Order with Signature	date and dated Signature of Parties when necessary
14/07/202	Ld. Counsel Ms. R. Bhattacharya appears for Sarfaesi
5	Applicant Bank. None appears for Respondent Bank.
	Ld. Counsel for Applicant Bank moves put up petition IA/1829/2025 for hearing of IA/1830/2025 in SA/250/2025 contending that Borrowers of Applicant Bank obtained loan mortgaging flat no. A/3 in Janani Appartment. There was sale deed between Sai Construction and Borrowers of the Applicant Bank. Ld. Counsel for Applicant Bank submits that Applicant Bank registered the security interest created in flat no. A/3 by CERSAI registration. The Borrowers of Applicant Bank came to know that today the Respondent Bank by virtue of the order of Ld. CJM – Hooghly dated 17/05/2025 is going to take possession of entire land on which the Janani Appartment is built. Applicant Bank has served notice on the Respondent Bank and has filed Affidavit of Service to which notice has been served on the Respondent Bank.
	Ld. Counsel for Applicant Bank further submits that Respondent Bank is going to take possession of the entire appartment which includes secured asset of the Applicant Bank by virtue of the order of ld. Magistrate under section 14 under Sarfaesi measures in provisions of Sarfaesi Act, 2002.
	So basically the dispute is regarding security interest created in the property between Applicant Bank and Respondent Bank. Section 11 of Sarfaesi Act provides resolution of disputes

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(Sne)

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DEBTS RECOVERY TRIBUNAL 1, KOLKATA

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between Bank or Financial Institution by concilliation or arbitration under the Arbitration and Concilliation Act, 1996. Therefore, Sarafesi action by Applicant Bank or Respondent Bank is not maintainable. Their dispute can be resolved by arbitration or concilliation.

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Applicant Bank has submitted sufficient evidence that the Respondent Bank is going to take possession of the property by virtue of the order of Magistrate which is not maintainable. Therefore, parties are directed to maintain status-quo in respect of property i.e. flat no. A/3 in the Janani Appartment and go for arbitration.

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In the meantime parties are directed to maintain

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status-quo.

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Applicant is directed to serve copy of this order on the Respondent Bank.

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Both the IAs and SA are disposed of.

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(Ambuja Mohan Das) Presiding Officer

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(Sne)

State Bank of India v. Punjab National Bank

Case brief

What is this about?

What did the court decide?

State Bank of India v. Punjab National Bank

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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Case details

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