The Delhi High Court has restrained Bank of Maharashtra from enforcing security over the Dwarka property claimed by SBI. Both banks are competing for possession of a property in Delhi.
SBI sanctioned a Cash Credit Facility of Rs.4.5 Crore to a bank customer on 19.09.2023. Property bearing No. 63, Block A, situated at Sector-8, Dwarka, New Delhi was mortgaged against the loan.
Upon default in repayments, the loan account was classified as NPA on 29.05.2025, following which the SBI initiated proceedings under the SARFAESI Act and also filed an original application before DRT-1, New Delhi.
Meanwhile, Bank of Maharashtra was also asserting a security interest towards the same property and had issued an auction notice opposing its sale on 15.01.2026. Both the banks wanted possession of same property.
In view of the competing claims of the two banks over the property, the SBI invoked Section 11 of the SARFAESI Act and approached 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.
The original title deeds of the property are already kept in SBI. The court has ordered Bank of Maharashtra to stop the auction and has also restrained Bank of Maharashtra from taking possession of Property.
Download Court Order PDF (This PDF is available for Premium Users Only. Click here to join premium)
