WP(C)/25936/2026 of M/S. MAA TARA TARINI STEELS, GANJAM Vs STATE OF ORISSA on 17 August 2026

ORDER

17.08.2026 Order No.

01.

1. This matter is taken up through Hybrid mode.

2. Heard learned counsel for the Petitioner. Perused the writ application as well as the documents annexed thereto.

3. The Petitioner has filed the present writ application with the following prayer: “Under the aforesaid facts and circumstances, the petitioner therefore prays, your Lordships would be graciously pleased to admit the Writ Petition, call for records and after hearing the parties, allow the same, issue writ/writs in the nature of certiorari/mandamus and be pleased to issue necessary direction(s) to the Opp. Parties No.2 & 3 State Bank of India, to conduct due enquiry and revoke the classification of Loan Accounts as NPA and allow the petitioner to operate/settle the Loan accounts as per the terms of the sanction, i.e. Letter of Arrangement dated 06.04.2024, for regularizing the loan account and further be pleased to direct the DRT, Cuttack to dispose of the all the I.A Nos. -56/2026 and 1743 of 2024 & I.A. Dy. No- 1470 of 2026 in S.A No- 120 of 2024. within a fixed time and pass any order(s) as deemed fit and necessary for the best interest of justice and equity.”

4. Learned counsel for the Petitioner at the outset contended that initially the Petitioner availed a cash credit loan of rupees twenty lakhs and a term loan of rupees seventy lakhs from the Opposite Party-Bank on 20.08.2018. Thereafter, on 04.06.2020 the Petitioner was sanctioned with GECL loan of rupees seventeen lakhs. While this was the position, on 19.11.2021 the GECL loan was extended for rupees eleven lakhs. Subsequently, on 06.04.2024, all the loan accounts were renewed and a fresh sanction supported by an arrangement was issued in favour of the Petitioner.

5. Learned counsel for the Petitioner contended that while this was the position, the Bank classified all the accounts as NPA on 12.04.2024. Being aggrieved by such classification of the loan accounts as NPA, the Petitioner filed a complaint before the Bank as well as the Ombudsman of the concerned Bank on 14.10.2025. While the complaint of the Petitioner was under consideration, the Opposite Party-Bank issued a letter admitting that the loan account has been renewed on 06.04.2024 vide their letter dated 21.10.2025. He further contended that earlier the Petitioner had approached this Court by filing W.P.(C) No. 33609 of 2025, which was disposed of on 05.12.2025 by a Coordinate Bench granting liberty to the Petitioner to pursue his remedy before the DRT, Cuttack including raising the issue as set out in the said writ application. It was further directed that the S.A. pending before the DRT will be disposed of within three months from the date of that order dated 05.12.2025.

6. In course of his argument, learned counsel for the Petitioner further submitted that in the meantime the Opposite Party-Bank approached the learned CJM, Berhampur by filing an application under Section 13 of the SARFAESI Act and obtained order dated 22.06.2026 under Section 14 of the SARFAESI Act. Being aggrieved by such order of the learned CJM, Berhampur, the Petitioner has once again approached this Court by filing the present writ application.

7. On perusal of the entire factual background of the present case, this Court is of the view that a proceeding is already pending before the learned DRT, Cuttack. Accordingly, while disposing of the present writ application, liberty is granted to the Petitioner to approach the learned DRT by filing an appropriate application, in the event the Petitioner feels aggrieved by the order passed by the learned CJM, Berhampur. Further, liberty is granted to the Petitioner to raise the issue with regard to the classification of the loan account of the Petitioner as NPA by the Bank in the aforesaid pending proceeding. It is further directed that in the event any such application is filed by the Petitioner, the learned DRT shall do well to consider and dispose of such application within a period of four weeks. It is open to the Petitioner to move an application seeking interim order from the learned DRT, Cuttack by filing an application. In the event any such application is filed seeking interim protection, the learned DRT shall pass necessary interim order, as expeditiously as possible, preferably within a period of ten days from the date such application is presented before the learned Tribunal.

8. With the above observation and direction, the application is disposed of.

Issue urgent certified copy of this order as per Rules.

( Aditya Kumar Mohapatra )

Judge

S.K. Rout

Digitally Signed Signed by: SANTANU KUMAR ROUT Reason: Authentication Location: High Court of Orissa, Cuttack Date: 18-Aug-2026 18:47:24 Signature Not Verified