HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT JAMMU Case No. WP(C) No. 2342/2024 WP(C) No. 839/2025 Reserved on: 08.12.2025 Pronounced on:- 16.12.2025 Uploaded on:-16.12.2025 Whether the operative part or full judgment is pronounced Vikas Bharti & Anr.

…..Petitioner(s)

Through: Ms. Mandeep Reen, Advocate Vs Punjab National Bank and ors.

.…. Respondent(s)

Though: Mr. Parveen Kapahi, Advocate c/w M/s Krishna Traders .

…..Petitioner(s)

Through: Mr. P.N Raina, Sr. Advocate with Mr. Sudesh Sharma, Advocate Vs Punjab National Bank & ors .…. Respondent(s)

Through: Mr. Parveen Kapahi, Advocate HON’BLE MRS.JUSTICE SINDHU SHARMA, JUDGE CORAM:

HON’BLE MR. JUSTICE SHAHZAD AZEEM, JUDGE (JUDGMENT)

Shahzad Azeem-J

1. At the outset and in order to keep the record straight, be it noted that WP(C) No. 2342/2024, titled Vikas Bharti and anr.

Vs. Punjab National Bank and ors. is filed by the successful bidder who participated in pursuance of e-auction sale notice dated 30.07.2024, whereas, e-auction was held in respect of secured assets stood mortgaged against the loan amount availed by the petitioner which is subject matter of challenge in WP(C) No. 839/2025 titled M/s Krishna Traders Vs. Punjab National Bank and ors., therefore, the petitioner is challenging the e- auction notice issued by the respondent-bank in respect of the secured assets, whereas, in the petition titled Vikas Bharti and anr. Vs. Punjab National Bank and ors., the petitioners are seeking direction to the respondent-Bank for handing over the physical possession of the auctioned property being successful bidders.

2. It is in the above backdrop, both the petitions were clubbed, therefore, fate of the petition titled Vikas Bharti and anr. Vs. Punjab National Bank and ors. is subservient to the outcome of WP(C) No. 839/2025, titled M/s Krishna Traders Vs. Punjab National Bank and ors, hence, we first propose to deal with the petition titled M/s Krishna Traders Vs. Punjab National Bank and ors.

WP(C) No. 839/2025

3. The petitioner has invoked the writ jurisdiction of this Court seeking quashment of e-auction sale notice dated 30.07.2024 issued by respondents No. 1 to 3 in respect of residential house along with land measuring 01 kanal, falling under Survey No. 215 min, Khata No. 64 min and Khewat No. 07 situate at Toph Sherkhania, Tehsil and District Jammu [residential house bearing No. 37-A, Bharat Nagar, Talab Tillo, Jammu] and also further seeks quashment of sale intimation letter dated 28.08.2024. The petitioner also seeks direction to the respondent-Bank not to proceed in terms of Notices issued under Section 13 (2) and 13 (4) of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [SARFAESI Act].

FACTS

4. Succinctly stated, the petitioner has availed a Cash Credit Limit [the CCL] to the tune of Rs. 75 lacks and housing loan to the tune of Rs. 10 lacs from the respondent-Bank and as primary security, the petitioner has mortgaged his property i.e. residential house along with land measuring 01 kanal, falling under Survey No. 215 min, Khata No. 64 min and Khewat No. 07 situate at Toph Sherkhania, Tehsil and District Jammu [residential house bearing No. 37-A, Bharat Nagar, Talab Tillo, Jammu].

5. However, the petitioner defaulted in repayment of installments which resulted in classification of the loan account as Non Performing Asset [NPA] on 30.09.2010 as per the Reserve Bank of India Guidelines and borrower was intimated accordingly.

6. On finding no response from the borrower, the bank was compelled to issue demand notice under Section 13 (2) of the SARFAESI Act followed by notice under Section 13 (4), respectively.

7. Meanwhile, the respondent-Bank said to have approved One Time Settlement (OTS) of the loan amount and intimation in this regard was given to the borrower vide letter dated

14.11.2017 with explicit stipulation, thus:-

“Please note that if full payment is not received as per under mentioned terms and conditions, bank shall proceed to re