PUNJAB NATIONAL BANK vs MUHARU MEV on 17 September 2026

1. This MA has been moved with the prayer to allow the MA for amendment in OA and affidavit, judgment, recovery certificate and sale certificate.

2. Counsel is relying upon the judgment of Hon’ble Supreme Court of India. Civil Appeal No(s). 8470 of 2022 arising out of Special Leave Petition (C) No(s). 30038 of 2019 in the matter of Varimadugu Obi Reddy Vs. B. Sreenivasulu & Ors. to say that mere typographical error due to inadvertence which has not caused any prejudice to the borrowers, that in itself could not be considered to be the ground to annul the process held by the secured creditor.

3. In that matter, only door no. was different by jumbling of last two digits, i.e. “123393” instead of “12339”, but in the present case, it is sheer negligence of the bank, when the area is mentioned as 1.05 in one Khasra and 0.06 in other Khasra. This makes the total land as 1.11 Hectare.

4. Now through this modification, they are seeking an amendment in the OA, final order, recovery certificate and sale certificate, the bank is trying to enrich the auction purchaser by one hectare of land.

5. This undue enrichment is prejudice to the interest of the borrower. According to the OA only 1.11 Hectare has been claimed to be mortgaged.

6. Counsel for the bank submits that their charge in the RODA is for the complete area. Be that it may be, it can be presumed cm that bank is deliberately and intelligently and with open mind has relinquished their charge over one hectare of the area. It is not an inadvertent mistake, because it is nearly more than 40% of the area of the land which is alleged to be mortgaged.

7. This shows that when the final orders were passed, when the recovery certificate was issued then by that time, the bank officer has not gone through the matter. Leave apart filing of the original application which has happened, notices were issued by the recovery officer. Auction was held. Auction purchaser only has participated in the auction proceedings for the agricultural land at Khepat no. 563 in Khasra no. 2168/1.05 and 2185/0.06, total area is 1.11 hectare.

8. Valuation also has been done for that area only, therefore Tribunal cannot permit any undue richment to the auction purchaser as it will cause financial loss to the bank. Definitely, if correct description was to be mentioned or would have been mentioned almost the property which have valued the double price.

9. In these circumstances, an option is given to the bank, if they want to amend the OA, then entire proceedings including final order, recovery certificate, recovery proceedings and all consequential proceedings undertaken under the recovery certificate has to be quashed.

10. Auction purchaser be refunded the amount deposited by him along with simple interest of 6%. The Tribunal has called the file of recovery certificate, valuation has been done for the Khasra No. 2168/1.05 and 2185/0.06. Valuer has also given wrong report because the area as per the clause 6 is 1.11 hectare, but he submits that it is 2.11 hectare, therefore he has also not verified the valuation in the terms of the recovery certificate. Sale proclamation are also the same.

11. The borrower has to be given a chance to defend as only the land 0.06 hectare and 1.05 hectare is shown to be cm mortgaged. Therefore, the bank is permitted to move an amendment application, seeking amendment in the original application for which the appropriate notices shall be issued to the borrowers to defend the matter.

12. The amount is lying with the bank, the Bank is directed to refund the same along with interest. Counsel for the applicant seeks two weeks time to file the amendment application.

13. This MA stands disposed of and OA no. 116/2017 be restored to its original number and be listed on 07.10.2026 before Registrar

14. The amendment application be filed on or before next date of hearing, i.e. 07.10.2026.

15. Copy of this order be sent to the General Manager, Recovery Head Office to take note of this order and issue appropriate guidelines and appropriate verification of the original application final orders and subsequent notices as and when they are issued.

16. Accordingly, MA stands disposed of, all pending IAs also stands disposed off, if any.

17. File be consigned to record as per rules. Copy of order be uploaded on website. File of the Recovery Certificate shall also be consigned to record room.

(Vimal Gupta) Presiding Officer