The Delhi High Court has issued notice to a home loan borrower who had taken a bank loan for purchase of a property from the Delhi Development Authority but had later sold the same. The Court has asked him to explain why he should not be sent to jail for execution of a decree on attachment of his property as he had defaulted on payment of the loan amount. Directing the debtor to file a reply to the notice by March 28, Justice S. N. Dhingra asked the creditor, Punjab National Bank, to deposit subsistence allowance for the debtor’s civil imprisonment for a period of two weeks.

The Court passed the order on an application by a person who had purchased the property in question from another person to whom the debtor had sold it. The bank had opposed the application arguing that the applicant was not a party to the suit on which a civil court here had passed the decree. It submitted that actually the property in question belonged to the debtor. Counsel for Punjab National Bank submitted that the facts of the case were that the debtor had taken a loan from the bank to buy a property from the Delhi Development Authority (DDA). Since DDA did not execute any conveyance deed in favor of the debtor and sent it to the bank, the property still stands in the name of the debtor in its records, the counsel submitted.