Division Bench Sets Aside No-Dues Direction, Holds Disputed Loan Facts Require Civil Trial

Case Snapshot

• Case Name: Punjab National Bank v. M.A. Enterprises & Anr.

• Citation: LPA 486/2026 (2026:DHC:6811-DB)

• High Court: High Court of Delhi

• Bench: Hon'ble Acting Chief Justice Devendra Kumar Upadhyaya and Hon'ble Mr. Justice Tejas Karia

• Date of Judgment: 18th August, 2026

• Area of Law: Banking, Loan Recovery, Writ Jurisdiction, SARFAESI Act

Judgment Headline

Court sets aside no-dues direction, holds disputed loan facts require civil adjudication.

The Judgment in One Line

Delhi High Court set aside Single Judge's order directing PNB to issue no-dues certificate, holding disputed loan liabilities require civil adjudication.

Why This Judgment Matters

This judgment clarifies that a zero balance in a bank statement is not conclusive proof of full loan repayment where the bank pr

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