STATE BANK OF INDIA Vs BANK OF MAHARASHTRA AND ORS

O.M.P.(I) (COMM.) 535/2025 Page 1 of 5

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* IN THE HIGH COURT OF DELHI AT NEW DELHI

# CNR No. DLHC011062212025

+ O.M.P.(I) (COMM.) 535/2025 & I.A. 4871/2026

STATE BANK OF INDIA .....Petitioner

Through: Ms. Madhavi Swaroop along

with Ms. Shagun Bhargava,

Advs.

versus

BANK OF MAHARASHTRA AND ORS .....Respondents

Through: Mr. R. Raghunath, Adv for R1.

Mr. Nipun Bharadwaj, Adv for

R2.

Mr. Navdeep, Adv. for R3.

R4 in person.

(Advocate for R4) appearance

not given.

CORAM:

HON'BLE MR. JUSTICE OM PRAKASH SHUKLA

JUDGMENT(ORAL)

% 12.08.2026

1. The present petition arises out of a Cash Credit Facility of

Rs.4.5 Crore sanctioned by the Petitioner, in favour of the Respondent

No. 2 on 19.09.2023 in connection with which the Respondent No. 2

to 4 executed the relevant loan and guarantee documents and property

bearing No. 63, Block A, situated at Sector-8, Dwarka, New Delhi

was stated to have been mortgaged in favour of the Petitioner.

2. Upon default in repayments, the loan account was classified as

NPA on 29.05.2025, following which the Petitioner initiated

proceedings under the SARFAESI Act and also filed an original

O.M.P.(I) (COMM.) 535/2025 Page 2 of 5

application before DRT-1, New Delhi.

3. The Petitioner subsequently learned that Respondent No. 1 was

also asserting a security interest towards the same property and had

issued an auction notice opposing its sale on 15.01.2026.

4. In view of the competing claims of the two banks over the

property, the Petitioner invoke Section 11 of the SARFAESI Act and

approach this Court under Section 9 of the Arbitration and

Conciliation Act, 1996, seeking interim protection against possession,

alienation and auction of the property pending adjudication of the

parties’ respective rights.

5. This Court vide order dated 23.12.2025 observed the

following:-

23.12.2025

“1. This is a petition filed under Section 9 of the Arbitration and

Conciliation Act, 1996 seeking the following reliefs:

"a) To pass an order of mandatory injunction against

Respondent no 1 restraining the Respondent no 1 from taking

possession of property bearing no 63 Block A, Sector 8

Dwarka, Delhi 110077 on 5.1.2026 or any other date

b) To pass an order of mandatory injunction against

Respondent no 1 restraining the Respondent no 1 from

auctioning the property bearing no 63 Block A, Sector 8

Dwarka, Delhi 110077 on 15.1.2026 or any other date

c) To pass an order restraining Respondent No 1 and

Respondent no 3 from selling, alienating disposing off,

encumbering or creating any charge or dealing with

immovable property namely House no 63 Block A, Sector -8

Dwarka, New Delhi which is mortgaged with the Petitioner

Bank

d) Pass an Order granting an ad interim ex-parte injunction in

terms of Prayers (a) (b) and (c) "

O.M.P.(I) (COMM.) 535/2025 Page 3 of 5

2. The brief facts of the case are that the respondent Nos. 2, 3

and 4 have created a mortgage of the above said property vide

memorandum for recording creation of mortgage by deposit and

title deeds. The Petitioner advanced a loan of Rs. 4.5 crores to

respondent Nos. 2, 3 and 4.

3. Ms. Bhargava, learned counsel for the petitioner states that

since the respondent Nos. 2, 3 and 4 failed to repay the loan

amount, the Petitioner issued notice under Securitisation and

Reconstruction of Financial Assets and Enforcement of Security

Interest Act, 2002 (SARFAESI Act) and has already filed an

original application before the DRT-1, Delhi.

4. However, respondent No. 1 is another bank which may

have advanced loan to respondent Nos. 2, 3 and 4 and the same

property has been mortgaged to the respondent No. 1.

5. The petitioner has now come to know that respondent No. 1

has

issued an auction notice in the newspaper, despite the property

being mortgaged with the petitioner bank and the original title

deeds of the property being in the possession of the petitioner.

6. Ms. Bhargava, learned counsel, relies on Section 11 of

SARFAESI Act to invoke the jurisdiction of this Court under

Section 9 of the Arbitration and Conciliation Act, 1996.

7. For the said reasons, issue notice to the respondents through

all modes, including electronic, on the petitioner taking steps

within 2 weeks from today, returnable on 20.02.2026.

8. Prima facie, the petitioner has advanced a loan of about Rs.

4.5 crores which is outstanding and a sum of about Rs. 5 crores is

due and payable as of today by respondent Nos. 2, 3 and 4.

9 In case the auction is permitted to be carried on, the

petitioner will be left remediless as the property which is

mortgaged with the petitioner would be auctioned.

10. Balance of convenience lies in favour of the petitioner and

if interim orders are not passed, the petitioner would suffer

irreparable damage and loss which cannot be compensated in terms

of money.

11. For the said reasons, the respondent No. 1 is restrained

from taking possession of property bearing No. 63, Block A, Sector

8, Dwarka and auctioning the property.

O.M.P.(I) (COMM.) 535/2025 Page 4 of 5

12. Dasti.”

6. Respondent No. 3 stands served through substituted service.

7. Mr. Navdeep, learned Counsel has entered appearance on behalf

of Respondent No. 3 and submitted that Respondent no. 3 has expired

in 2011. This submission, however, is disputed by Respondent No. 4.

8. Keeping the objective of expeditious disposal in commercial

matter, the interim order restraining Respondent No. 1 from taking

possession of or auctioning the subject property is made absolute.

9. The Petitioner shall take steps for commencement of arbitration

in terms of Section 11 of the SARFAESI Act within three weeks from

today.

10. Interim order dated 23.12.2025, is made absolute, subject to the

Petitioner invoking or commencing arbitral proceedings within the

period of three weeks from today.

11. Upon constitution of the Arbitral Tribunal, the Petitioner and

the Respondents shall be at liberty to move an application under

Section 17 of the Act.

12. The interim protection granted by this Court shall continue until

the learned Arbitral Tribunal considers the prayer for interim relief.

O.M.P.(I) (COMM.) 535/2025 Page 5 of 5

13. The petition along with pending application(s), if any, is

disposed of in the aforesaid terms.

OM PRAKASH SHUKLA, J

AUGUST 12, 2026/at