Kailash Ahuja Vs Canara Bank and Ors. — Banking and Recovery | Punjab & Haryana HC (2026)

Kailash Ahuja Vs Canara Bank and Ors. — Banking and Recovery | Punjab & Haryana HC (2026)

What the court decided

AI extract

Outcome

Writ petition disposed of: impugned DRT-III order dated 15.02.2024 (Annexure P-1) set aside without commenting on merits; matter remanded to Debt Recovery Tribunal-III, Chandigarh for fresh decision on the application for condonation of delay in accordance with law; parties directed to appear before DRT-III, Chandigarh on 04.05.2026 at 11.00 am; pending applications also disposed of.

Issue for consideration

Whether the provisions of the Limitation Act, 1963, including Section 5 of the Limitation Act, 1963, for condoning the delay, are applicable to applications filed under Section 17(1) of the SARFAESI Act.

Court's answer

Learned counsel for the parties being ad idem, the Court proceeded on the footing that the question whether the provisions of the Limitation Act, 1963, including Section 5 thereof, apply for condoning delay to applications filed under Section 17(1) of the SARFAESI Act is settled by the Division Bench of this Court in M/s Fair Style Embroidery Works & Anr. vs. Debts Recovery Tribunal-III & Ors. and is no longer res integra.

Ratio / Principle

Without commenting on the merits of the case, the impugned order dated 15.02.2024 (Annexure P-1) passed by the Debt Recovery Tribunal-III, Chandigarh is set aside.

Key takeaways

The matter is remanded to the Debt Recovery Tribunal-III, Chandigarh for a decision afresh on the application for condoning the delay in accordance with law.ratio¶15

Detailed headnote1 paragraphs

SARFAESI Act - Section 17 appeal - Dismissal solely on the ground of delay - Counsel ad idem that applicability of the Limitation Act, 1963, including Section 5 thereof, to applications under Section 17(1) of the SARFAESI Act stands settled by the Division Bench of the Punjab and Haryana High Court in M/s Fair Style Embroidery Works & Anr. vs. Debts Recovery Tribunal-III & Ors., 2025 (4) RCR (Civil) 666 - Without commenting on the merits, order dated 15.02.2024 (Annexure P-1) of DRT-III, Chandigarh dismissing the Section 17 appeal only for delay set aside - Matter remanded to DRT-III, Chandigarh for decision afresh on the delay-condonation application in accordance with law - Parties directed to appear on 04.05.2026 at 11.00 am - Writ petition disposed of, pending applications also disposed of.

226-1

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

CWP-5836-2024 (O&M) Date of Decision : 22.04.2026

Kailash Ahuja ... Petitioner Versus Canara Bank and Ors ... Respondents

CORAM : HON'BLE MRS. JUSTICE ALKA SARIN HON'BLE MR. JUSTICE RAMESH CHANDER DIMRI

Present : Mr. Mahir Sood, Advocate for the petitioner.

Mr. Gaurav Goel, Advocate for respondent Nos.1 and 2.

ALKA SARIN, J. (Oral)

Present writ petition has been filed challenging the order dated 15.02.2024 (Annexure P-1) whereby the appeal preferred by the petitioner under Section 17 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as ‘SARFAESI Act’) has been dismissed only on the ground of delay.

Learned counsel for the parties are ad idem that the issue whether the provisions of Limitation Act, 1963 including Section 5 of the Limitation Act, 1963 for condoning the delay are applicable to applications filed under Section 17(1) of the SARFAESI Act is no longer res integra and that the issue stands settled by the Division Bench of this Court in case of M/s Fair Style Embroidery Works & Anr. vs. Debts Recovery Tribunal-III & Ors. [2025

(4) RCR (Civil) 666] .

JITENDER KUMAR 2026.04.23 10:11 I attest to the accuracy and authenticity of this order/judgment Chandigarh

CWP-5836-2024

-2-

In view of the above and without commenting on the merits of the case, the impugned order dated 15.02.2024 (Annexure P-1) passed by the Debt Recovery Tribunal-III, Chandigarh is set aside and the matter is remanded back to the Debt Recovery Tribunal-III, Chandigarh for a decision afresh on the application for condoning the delay in accordance with law.

The parties are directed to appear before the Debt Recovery Tribunal-III, Chandigarh on 04.05.2026 at 11.00 am .

Disposed off. Pending applications, if any, also stand disposed off.

( ALKA SARIN ) JUDGE

22.04.2026 ( RAMESH CHANDER DIMRI ) jk JUDGE

NOTE: Whether speaking/non-speaking: Speaking Whether reportable: YES/NO

JITENDER KUMAR 2026.04.23 10:11 I attest to the accuracy and authenticity of this order/judgment Chandigarh