Supreme Court upholds ₹375 crore SBI loan recovery from Atibir Industries

The case concerns a dispute between Atibir Industries and State Bank of India regarding the classification of the borrower's loan account as a Non-Performing Asset (NPA) and the subsequent assignment of the debt to an asset reconstruction company. The Supreme Court is reviewing the High Court's decision that upheld the NPA classification and the debt assignment.

Who it concerns: Appellant: Atibir Industries Co. Ltd.; Respondents: State Bank of India and an Asset Reconstruction Company (Respondent No. 2); Bench: Justice V. Mohana.

What the court decided

• Leave for the appeal was granted.
• The document provided is truncated and does not contain the final operative order, relief granted, or specific directions issued by the Supreme Court in this judgment.
• No next date or final settlement amount is stated in the provided text.

Also in the document

• The Calcutta High Court Division Bench had previously allowed the bank's appeal, holding that the NPA classification was valid because the borrower's cash credit account was in default, even if the term loan account might have benefited from a pandemic moratorium.
• The High Court held that the bank acted under Section 5 of the SARFAESI Act (sale of financial assets) rather than Section 13(4) (possession), and that the assignment of the debt to the asset reconstruction company was valid.