Ms NAP Leathers Private Ltd vs Ms ASSET RECONSTRUCTION COMPANY OF INDIA LTD on 9 September 2026

IN THE DEBTS RECOVERY APPELLATE TRIBUNAL AT KOLKATA

HON’BLE MR. JUSTICE ANIL KUMAR SRIVASTAVA CHAIRPERSON Appeal No. 12 of 2025 (Arising out of S.A. 245 of 2008 & Review Appeal No. 02 of 2023 in DRT-I, Hyderabad) Order No. 19 09.09.2026 M/s NAP Leathers Private Limited … Appellant

-Vs- Asset Reconstruction Company of India Limited (ARCIL) & Another … Respondents Mr. R. Pavan Reddy, Learned Counsel for Appellant Mr. Anirnan Ray, Sr, Advocate with Mr. Pratik Ghosh and Mr. Avishek Roy Chowdhury, Learned Counsel for Respondent THE APPELLATE TRIBUNAL: For Admission I.A. 564 of 2026 This is a put-up application. Since the record is put up, I.A. stands disposed of.

I.A. 565 of 2026 Application by the Appellant for restraining the Respondents from conducting the sale on the basis of e-auction sale notice dated 21st July, 2026. Heard the Learned Counsel for Appellant as well as the Respondent Bank and perused the record. Instant I.A. is filed in the pending Appeal No. 12 of 2025 wherein challenge was made to the judgment and order dated 18th November, 2025 passed by Learned DRT-I, Hyderabad in S.A. 245 of 2008 whereby the Learned DRT dismissed the S.A. Pertinently, in the S.A. challenge was made for the action of the Respondent in taking possession of the secured asset and assignment of the claim of the Bank in favour of the Respondent No. 1, i.e., Asset Reconstruction Company India Limited, pending adjudication, counter-claim and set off. Appeal is pending for hearing which is a part heard matter. At the very initial stage, Learned Counsel for Respondent opposed the application on the ground of maintainability. Learned Counsel for Appellant would submit that pending appeal the Financial Institution has issued notice of sale on 21st July, 2026 fixing the date of sale on 9th September, 2026. It is submitted that the possession of the secured asset was taken by the Bank in the year 2008 and thereafter no steps were taken by the Bank or the Financial Institution. Now, after lapse of 18 years, notice is issued for conducting the auction. Learned Counsel further submits that Appellant has already made pre-deposit and the Respondent, Financial Institution, would adjust the amount in the loan account of the Appellant wherein there are charges levied by the Financial Institution against law. Per contra, Learned Counsel for Respondent would submit that no ground is taken by the Respondent for stay of the e-auction sale notice dated 21st July, 2026. There is no bar in conducting the sale even after lapse of sufficient time, i.e., 18 years. Financial Institution is adopting the proceedings in accordance with law. No ground is made out in the application for stay. Undoubtedly, the appeal is pending which is a part heard appeal. However, pending appeal, e-auction sale notice was issued by the Financial Institution as there was no stay in the appeal restraining the Financial Institution to conduct the sale. Now, the only ground taken by the Appellant is that after about 18 years of taking the physical possession, sale is being conducted; which should not be a ground for staying the sale. Even in the application, I.A. 565 of 2026, no ground is taken as to why the proposed auction should be stayed. Only ground taken in paragraph 8 wherein it is stated that since appeal is pending and if it is allowed, the disbursement and appropriation of fund by the Respondent, Financial Institution, will create financial complicity. There are no grounds for staying the e-auction sale is made out in the application. No challenge, either legality or validity of the notice or service of the notice is made by Appellant. Only ground is that after 18 years of taking over possession Sale Notice is issued. This could not be a ground for staying the sale. Accordingly, we do not find any ground to stay the auction scheduled to be held today. Accordingly, I.A. 565 of 2026 has no merits and is accordingly dismissed. However, sale, if conducted, would be subject to the decision of the appeal. List on 7th December, 2026 for hearing.

(Anil Kumar Srivastava,J) Chairperson Dated: 9th September, 2026 03/ac