Debts Recovery Tribunals and Appellate Tribunals
PNB HOUSING FINANCE LTD vs STATE BANK OF INDIA AND ORS on 15 October 2026
**DEBTS RECOVERY APPELLATE TRIBUNAL, DELHI**
**Misc. Appeal No. 94/2019
Arising out of OA No. 536/2014 (DRT-III, Delhi)**
**Item No. 22**
**PNB Housing Finance Limited
V
State Bank of India & another**
**15.10.2026 Hon'ble Dr. Justice Sudhir Kumar Jain**
Present: Ms. Sampanna Pani, Advocate for appellant through VC
This matter is taken up through Hybrid hearing.
**I.A. No. 643/2026 (Seeking substitution of applicant)**
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1. 1. The instant application is filed for substitution of Kotak Mahindra Bank Limited in place of PNB Housing Finance Limited as an appellant on the ground that the present appellant i.e. PNB Housing Finance Limited has assigned the debt to Kotak Mahindra Bank in terms of the assignment deed dated 04.03.2023.
2. 2. After considering all the facts, the Kotak Mahindra Bank Limited is allowed to be substituted in place of PNB Housing Finance Limited as an appellant.
3. 3. None has appeared on behalf of the respondent no.1 / State Bank of India despite service.
4. 4. The present dispute involves two banks and a financial institution and as per Section 11 of the SARFAESI Act, the present dispute is to be resolved by conciliation or arbitration. The respective counsel also referred the decision of the Supreme Court in case titled as **Bank of India V. Sri Nangli Rice Mills Private Limited & others**, Civil Appeal 7110/2025 decided on 23.05.2025.
5. 5. Accordingly, in view of Section 11 of the SARFAESI Act and the above-mentioned judgment delivered by the Supreme Court, the present misc. appeal bearing no. 94/2019 is disposed of with the direction to the banks and the financial institution to resolve their dispute regarding apportionment of the sale proceeds as well as genuineness of the title deeds on which they are claiming their right over the subject property through conciliation or arbitration.
6. Kotak Mahindra Bank Limited being the appellant in Misc. Appeal No. 94/2019 is directed to initiate appropriate legal proceedings for appointment of Arbitrator for resolution of the dispute within 8 weeks from the date of uploading of this order on the website of this Tribunal. It is made clear that the impugned order dated 09.12.2016 shall not have any influence in the decision or award to be made by the proposed Arbitrator in accordance with law.
7. The present appeal stands disposed of along with pending applications, if any.
sd - ----- **(Dr. Justice Sudhir Kumar Jain)** **Chairpersons**
-p\$