Debts Recovery Tribunals and Appellate Tribunals
ALICA KRAFT PAPER PVT LTD AND ORS vs STATE BANK OF INDIA on 9 October 2026
BEFORE THE DEBTS RECOVERY
APPELLATE TRIBUNAL, AT: MUMBAI
Present: Justice Vivek Bharti Sharma, Chairperson
I.A. Diary No. 1687/2026 (Stay)
In
Regular Appeal Diary No. 1231/2026
Between
M/s. Alica Kraft Paper Pvt. Ltd. & Ors.
… Appellant/s
V/s.
State Bank of India & Ors.
…Respondent/s
-: Order dated: 09/10/2026: -
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1. Present as under:
Mr. Gaurang Khinkhabwala along with Ms. Anushree Talekar, i/b Ms. Kanjani Trivedi, Counsel for Applicants/Borrowers. Mrs. Rathina Marvarman along with Mr. Q.M. Tauseef, Counsel for Respondent No.1/ Bank. No representation for other Respondents despite repeated calls.
2. Vide order dated 07.10.2026, I.A. No. 445/2026 seeking waiver in terms of the third proviso to Section 18 of the SARFAESI Act was allowed thereby directing the Applicants/Borrowers to deposit 35% of the amount mentioned in the sale notice.
3. submit that the Applicants/Borrowers have complied with the aforesaid order.
He would further submit that a notice for taking possession of the secured assets on 10.10.2026 has been issued by the Respondent No.1/Bank. Therefore, he requests that I.A. (Diary) No. 1687/2026 seeking interim stay be heard and decided.
4. The Learned Counsel for the Respondent No.1/Bank would submit that due to paucity of time, the Respondent No.1/Bank wants to place written submissions.
5. The Learned Counsel for the Applicants/Borrowers would submit that the initial loan amount was approximately ₹17 Crore, whereas in the sale notice a demand was of ₹22,15,39,892.36/-; that, the demand notice issued under Section 13(2) of the SARFAESI Act is bad in law and illegal, as it does not contain the requisite details as mandated under the law; that, the symbolic possession notice was never served upon the Applicants/Borrowers, therefore, the same is also bad in law; that, the application filed by the Respondent No.1/Bank before the Magistrate under Section 14 of the SARFAESI Act did not comply with the requirements prescribed under the Act and the Rules framed thereunder; that, the order passed by the Learned Magistrate under Section 14 is also mechanical and illegal.
6. further submit that the last sanction of the credit facility was issued on 08.06.2023, however, the account of the Applicants/Borrowers was declared as a Non-Performing Asset (NPA) on 26.06.2023 without completion of the prescribed period of 90 days, therefore, the classification of the account as an NPA is bad in law.
7. At this stage, the Learned Counsel for the Respondent No.1/Bank would submit that the aforesaid contention regarding the classification of the account as an NPA has never been raised before and has been raised for the first time in the present Appeal. Therefore, she seeks time to obtain instructions from the Bank and to file detailed reply to the I.A. for stay.
8. submit that the Respondent No.1/Bank has issued a notice for taking possession of the secured assets, therefore, the Respondent No.1/Bank be restrained from taking possession of the said properties till the next date of hearing.
9. Considered.
10. In view of the above, the Respondent No.1/Bank shall file its reply with an advance copy to the Applicants/Borrowers.
11. The Applicants/Borrowers may file their rejoinder, if any, to the reply filed by the Respondent No.1/Bank.
12. Meanwhile, the Respondent No.1/Bank is restrained from taking possession of the following properties till the next date of hearing: -
i. Residential property bearing Survey No. 5, No. 1415P0LDN0.461, New Survey No. 1415/P, Chandralok Apartment, Kamaya Chatralay Road, Village Vajepar, Morbi, Gujarat.
ii. Property comprising Commercial Plots bearing Survey Nos. 128/P- 1, P-2 and P-3, Plot Nos. 1, 3, 4 and 13, Balaji Industries Estate, behind Balaji Cement Pipe, opposite Laxminagar Bus Stop, near Maitri Park and Essar Petrol Pump, Morbi–Maliya National Highway, Village Nava Sadulka, Morbi, Gujarat.
iii. Residential property bearing Survey No. 992/P, Shiv Park, near Nirmal Vidhyalay, near Avani Circle, Canal Road, Vajepar, Morbi – 363641 (Urban), Gujarat.
iv. Commercial Plots bearing Survey Nos. 2, 14, 17 and 18, Revenue Survey No. 257/P (Old Revenue Survey No. 128/P-1/P-2), situated at Balaji Industrial Estate, behind Balaji Cement Pipe, near Laxminagar Bus Stop, Maitri Park and Essar Petrol Pump, Morbi–Maliya National Highway, Village Nava Sadulka, Morbi, Gujarat.
13. List the case on 20.11.2026 for hearing. Sd/- Chairperson 09.10.2026
Psa-03