Uttarakhand High Court halts PNB flat auction, allows home loan dues in instalments

The Uttarakhand High Court on 27 October 2026 put on hold a Punjab National Bank auction of a Haridwar flat, set for 3 November 2026, after the woman living in it agreed to repay her husband's housing loan in instalments. She must deposit Rs 8 lakh with the bank by 11 November 2026.

What Happened

According to the order, the woman's husband took a housing loan from PNB for the flat in Jwalapur, Haridwar. After matrimonial differences he moved to Gujarat, while she continued to live in the flat. The court recorded that he stopped paying the instalments, and the loan was classified as a non-performing asset.

The bank then acted under the SARFAESI Act, the law that lets banks take over and sell property pledged for a loan. It issued a demand notice dated 30 May 2026 under Section 13(2) for Rs 28,61,240, followed by a possession notice and a sale notice dated 25 September 2026. The woman asked the High Court to quash the sale notice and the proceedings.

Before the court, her counsel said she was ready to repay the dues in equal monthly instalments. The bank's counsel had no serious objection but asked for at least Rs 9 lakh within 15 days to show good faith.

The court disposed of the petition with these directions:

• Rs 8 lakh to be deposited with the bank within 15 days, on or before 11 November 2026.
• The balance, including interest, to be paid in four equal quarterly instalments of Rs 5 lakh each within one year from 11 November 2026, with the last instalment carrying the entire remaining balance.
• If any condition is broken, the bank may recover the full amount by auctioning the flat.

What It Means

The order shows a court giving a family member living in a mortgaged home time to clear the dues, with the bank's broad agreement, instead of letting an auction go ahead. The relief is conditional: missing a single payment allows the bank to auction the flat.

Borrowers facing SARFAESI action can ask their bank for a written statement of the dues and a repayment plan. Complaints about a bank's service can be filed with the RBI at https://cms.rbi.org.in.

Source: High Court judgment