CITY UNION BANK LIMITED vs Agarwal steels on 27 July 2026

IN THE DEBTS RECOVERY APPELLATE TRIBUNAL AT KOLKATA HON’BLE MR. JUSTICE ANIL KUMAR SRIVASTAVA CHAIRPERSON Appeal No. 115 of 2025

Order No.16 27.07.2026

City Union Bank ……Appellant -Vs- Agarwal Steels & Ors. … Respondents Mr. Ambadipudi Satyanarayana(virtual), Mr. Anirban Pramanick, Ms. Subhasree Dey Learned Counsel for the Appellants Mr. Raja Sekhar Rao Salvaji(virtual), Learned Counsel for Respondents THE APPELLATE TRIBUNAL : Heard the Learned Counsel for the parties. Learned Counsel for the Respondents would submit that a proposal for OTS was submitted before the bank, but as per Learned Counsel for the bank that was considered and was declined, thereafter there was no proposal pending for OTS. Learned Counsel for the Appellant would submit that instant appeal is preferred against the order dated 10.06.2025 passed by Learned DRT-II Hyderabad allowing the S.A. No. 136 of 2025 mainly on the ground that the classification of the account as NPA is not in accordance with the RBI guidelines. Learned DRT has placed reliance upon the judgement of Hon’ble High Court of Punjab and Haryana at Chandigarh in Amar Alloys Pvt. Ltd. -vs- State Bank

2 of India 2019 SCC Online P&H 571 decided on 17.05.2019. Learned Counsel for the Appellant would submit that this judgement of the Hon’ble High Court is stayed by the Hon’ble Apex Court in SLP No. 21342 of 2019 dated 13.09.2019. On this score, Learned Counsel for the Appellant would submit that the operation of impugned order may be stayed, as it is affecting the same S.A. and O.A. loan accounts wherein the proceedings are pending. Per contra, Learned Counsel for the Respondents would submit that the appeal is ripe for hearing, although hearing could not be made today as Learned advocate on record for the respondents is not available. It is further submitted that the issue of NPA was rightly decided by the Learned DRT. On another account also wherein a period of three months default was not complete at the time of classifying the account as NPA. Having gone through the records, prima facie we are of the view that the judgement of Hon’ble High Court of Punjab and Haryana at Chandigarh in Amar Alloys Pvt. Ltd. -vs- State Bank of India 2019 SCC Online P&H 571 Supra wherein reliance is placed by the Learned DRT is stayed by the Hon’ble Apex Court in SLP No. 21342 of 2019. There are issues to be considered in the appeal. Accordingly, list the matter for hearing on 24th August,2026. Till then operation of the impugned order shall remain stayed. (Anil Kumar Srivastava,J) Chairperson Dated 27th July, 2026 15/tk