CATHOLIC SYRIAN BANK LIMITED vs Khalsa Nirbhai Transport Company Private Limited & Ors. on 17 September 2026

1. The respondent no.1 filed S.A. bearing no.193/2025 which was stated to be pending before DRT-III, Chandigarh. DRT-III, Chandigarh vide final order dated 20.01.2026 has allowed the S.A. by observing that the account of the respondent was declared as NPA illegally and the service of notice under Section 13(4) of the SARFAESI Act was not proved. However, the appellant was given liberty to initiate fresh proceedings under the SARFAESI Act as per the law against the respondent no.1. The appellant being aggrieved filed the present appeal.

2. Sh. Krishan Tewary, Advocate for the appellant stated that the appellant was not given an opportunity to advance argument on 12.01.2026 when the S.A. was listed for final arguments. It is further stated that the final impugned order dated 20.01.2026 is result of violation of principals of natural justice which also affected the substantial rights of the appellant. It is prayed that the impugned order be set aside and the present appeal be heard on merit.

3. Sh. Vibhor Vardhan, Advocate for the respondent no.1 after referring the order dated 12.01.2026 argued that DRT-III, Chandigarh has called the case several times but none has appeared on behalf of the appellant to advance argument. Thereafter DRT-III, Chandigarh post lunch session heard the arguments and listed the case on 20.01.2026 for final order. The order dated 12.01.2026 is reproduced as under:

**Case called out again and again since morning upto post lunch session. Sh. Diwan Sharma, Advocate is present. None is present for respondent nos. 1 and 2.**

**After post lunch session heard arguments of learned counsel for applicant on SA. None is present for respondent nos.1 and 2 for advancing arguments even after post lunch session.**

**Due to hearing and passing of orders in other urgent matters, order could not be passed.**

**Put up on 20.01.2026 for final orders.**

4. The counsel for the appellant stated that after order dated 12.01.2026, the appellant has filed an application for recall of the order dated 12.01.2026 which was not decided by DRT-III, Chandigarh and to rebut said argument the counsel for the respondent no.1 stated that even on 20.01.2026 when the final order was passed none has appeared on behalf of the appellant.

5. The impugned final order dated 20.01.2026 is reflecting that the chance was given to the appellant but the appellant did not advance final argument on merit before final disposal of S.A. bearing no.193/2025 vide final order dated 20.01.2026. In the interest of justice, the final order dated 20.01.2026 is set aside and S.A. bearing no.193/2025 is remanded back to DRT-III, Chandigarh for fresh decision after giving an opportunity to advance argument to the appellant. It is made clear that on the date so fixed by DRT-III, Chandigarh if the appellant is not able to advance argument in that eventuality DRT-III, Chandigarh shall be at liberty to pass appropriate order.

6. Till the final disposal of S.A. bearing no.193/2026 in pursuance of this order, the *status quo* regarding the subject property shall be maintained by the appellant.

7. DRT-III, Chandigarh is directed to finally decide the S.A. bearing no.193/2025 preferably within a period of three weeks with the date of appearance of parties. It is also made clear that the appellant is only given liberty to advance final argument on the merit of S.A. bearing no.193/2025.

8. The parties are directed to appear before DRT-III, Chandigarh on 03.11.2026 for final directions.

----- **(Dr. Justice Sudhir Kumar Jain)** **Chairperson**

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