INDIAN OVERSEAS BANK vs M/S SCASA NUTRIENTS PVT. LTD. on 15 October 2026

1. 'l'hc rcspondcnt has filcd thc instant caveat. Ms. Deepshikha Gupta has appcared for thc respondcnt. Accordingly, thc cavcat is discharged.

2. Itcspondcnt filcd thc SA bcaring No. 35312024 titlcd as M/s SCASA Nutrients Private Limitcd V Indian Overseas Ilank which was stated to bc pcnding bcfore thc DI{l-III, Chandigarh. DI{'[-[I, Chandigarh vide final ordcr dated 27.05.2025 has allowcd thc SA and quashed thc SAIU,ALiSI proceedings initiated by the appcllant on thc ground that the loan accounts were classified as M)A wrongly and illcgally in contravention of guidclines issued by the I{escrve Bank of India as well as thc ordcr passcd by thc IIon'blc Suprcmc Court of India. IIowcver, the libcrty is givcn to the appellant that the appellant may again initiate the SAITFAESI procccdings in accordancc with law. l'hc relevant portion of the final order dated 27.05.2025 is rcproduccd as undcr:

(32) SA is allowed. SARFAESI procecdings initiated by the respondent is quashcd since initiation as loan accounts were classified as Nl,A wrongly and illegally in contravcntion of guidclines issued by Reserve Ilank of India as well as ordcr passed by llon'ble Supreme Court of India. It is madc clear that respondcnt may again initiate fresh SARFAESI proceedings according to law.

3. It is pcrtincnt to mcntion that none of the parties in thc SA has preferred to file thc appeal. Sh. Sanjccv Ilhandari, Scnior Counscl for the appellant statcd that the appcllant has acccptcd thc final ordcr datcd 27 .05.2025 and decided to initiatc thc frcsh proceedings under thc SAI{IIAIISI Act against the respondent. IIe ilher statcd that thc datc of NPA was oorrected as 29.03.2021 from 31.03 ,2021 on the basis of thc statcmcnt of account and othcr relevant records thereaftcr fresh notice undcr Scction 13(2) of thc SAI{IiAIISI Act datccl 24.06.2025 was issucd. :

4. 'lhc respondcnt aftcr disposal of thc SA vidc orclcr dated 27 .05.2025 filect the misc. Application bcaring no. llll2025 which is stated to be still pending before thc DI{I'-III, Chandigarh. I'he DI{I'-III Chandigarh vide order dated 04.08.2025 has rcstrained thc appellant to procecd fuithcr in pursuance of demand notice dated 24.06.202.5 till next date fixed undcr thc SAIU,AESI Act. 'l'he appellant has not challcngcd thc ordcr dated 04.08.2025.

5. Sh. Sanjccv Ilhandari, Scnior Counscl stated that vidc notification dated 15.0g.2026 thc appcllant has invitcd thc llOI (Iixprcssion of Intcrcst) for "transfer of Nl'A loan exposurcs to AllCs and permittcd transferees" and thereafler that NPA account pcrtaining to the respondent has already been assigned to another AI{C namcly CFM Assct I{econstruction Company on 24.09.2026. Sh. Sanjeev Ilhandari further statcd that the DI{'I'-III, Chandigarh vide order dated 28.09.2026 has ordcrcd to kept in abeyancc thc notification datcd 15.09.2026 inviting the IiOIs for transfer of NPA loan accounts including thc loan account of applicant till furthcr ordcrs. 'l'hc appcllant bcing aggrievecl filcd thc prescnt appeal.

6. 'l'hc DI{I'-[I, Chandigarh in thc ordcr dated 28.09.2026 also observed that the appcllant in contravcntion of the rcstrain order passod by the DI{T has issued notifioation dated 15.09.2026 inviting thc I1OIs for transfcr of NPA loan accounts which is not pcrmissible undcr thc law.

7. Sh. Sanjccv Ilhandari, Scnior Counscl for thc appcllant furthcr argucd that thc said dircction in thc impugncd ordcr datcd 28.09.2026 is in contravcntion of thc Soclion (5) of thc SAI{FAIiSI Act which authoriscd any financial institution to assign thc outstanding dues of the debt to any AI{C. It is furthcr argued that the I)R'I'-III, Chandigarh in the impugncd ordcr dated 28.09.2026 has wrongly obscrvcd that thc lcttcr notification dated 15.09.2026 was in contravention of the rcstrain ordcr dated 04.08.2025. It is further argucd that a[1cr transfer of the acoount thc new assigncc has thc right to appcar beforc thc DI{'l' and also to participatc in thc proceeding arisen due to M.A. bearing no. llll2025 and also cntitlcd to takc ovcr thc procecdings in accordancc with law. In support of his argumcnt Sh. Sanjccv Ilhandari, Senior Advocatc for the appellant has cited the judgment of the Iligh Court of Judicature at Madras passed on 30. ll.202I titled as M/s AMll Pharma India Privatc Limited & others v. Authorized Officer lndian Ovcrseas llank.

8. In thcsc circumstanccs, Sh. Sanjccv Ilhandari, Scnior Counscl tor the appellant statcd that thc impugncd ordcr datcd 28.09.2026 is bad in law and liable to be set-., asidc. Ilowcvcr, during thc coursc of thc argumcnts it is stated that the M.A. bcaring no. I lll2025 is still pcnding and listed on 19.10.2026 and such direction can bc issucd to the DI{|-III, Chandigarh for disposal of the MA bearing no. 11112025 as carly as possible withoul any unnecessary delay and further while dcciding thc M.A. bearing no. 11112025, the DI{T-III, Chandigarh should not be influcnccd by any observation madc in thc ordcr datcd 28.09.2026. It is also stated that all thc plcas and contcntions of the oontcsting parties shall bc allowed to be takcn which can bc taking during the hcaring of M.A. bcaring no. 11112026 including the jurisdictional issues.

9. Ms. Dccpshikha (iupta, Counscl for the respondent defcnded the impugned ordcr datcd 28.09.2026 and stated that thc notification dated 15.09.2026 was not issucd in oontravention of restrain ordcr dated 04.08.2025. During the course of argumcnts, Ms. Gupta invitc the attcntion towards thc notification dated 15.09.2026 and stated that it was pcrtaining to the o'transfer of NPA loan exposure to AIIC and permitted transferring" and it does not have any spcculation that it was issucd undcr Scction (5) of thc SAIUTAIiSI Act. Ilowever, shc argucd that M.A. bearing no. 1 lll2025 is listed on 19.10.2026 for final hearing and sl-rc has nr> objcction if thc ncocssary dircction can bc issucd to thc l)I{'l'-lll, Chancligarh lor carly disposal ol'thc M.A. bcaring No. 11112025.

10. [n vicw of thc submissions madc by thc rcspcctivc Counscls lor thc appcllant ar-rd thc rcspondcnt, thc prcscnt appcal is disposcd ol'with thc dircction to thc I)I{'l'- IIl, Chandigarh to dccidc thc M.A. bcaring no. 11112025 witliin a pcriod of onc tnontlr liom tl-rc datc of rcccipt of this ordcr. lt is also madc clcar Lhat'al thc timc ol' linal disposal, thc l)lt'l' shall not bc inlluonccd with any obsorvation mado in tho orclcrs clatccl 04.08.2025 ancl 28.01).2026. 'l'hc oontcstirrg partics shall also bc at libcrty to raisc all thc issucs and contcntions in accordancc with law including thc jurisclictional issuc. 'l'hc pcnding application also stands disposcd of accordingly. ll.'l'hc copy ol this ordcr bc givcn to l)l{'l'-lll, Chandigarh 1'or information and compliancc. -i-" -A

(t) r.J;rr* *tron,. Kumar .ruin) Chairperson -tr$