Debpara Tea Co. vs SBI Writ Dismissed

Authority: High Court at Calcutta (Constitutional Writ Jurisdiction)

Order Date: 02 September 2026

Case Overview

• Parties: Debpara Tea Company Limited (petitioner) and its directors (guarantors) vs State Bank of India (respondent).
• Background: Loan of Rs 13.73 crore granted on 7 Oct 2020, enhanced on 6 May 2022; petitioner is classified as an MSME.
• SBI classified the loan as a Non‑Performing Asset on 29 Dec 2023 and notified the petitioners on 2 Jan 2024.
• SBI issued SARFAESI notices: demand of Rs 13.24 crore on 15 Jan 2024, Section 13(2) notice for Rs 14.28 crore on 21 Mar 2024, settlement invitation on 3 Apr 2024, and a Section 13(4) possession notice on 16 Sep 2024.
• Petitioners replied on 17 May 2024 claiming no prior reminders, submitted revised settlement proposals on 4 Dec 2024, 4 Jan 2025 and 30 Mar 2025, and made a representation to the RBI on 10 Apr 2026, but never invoked the Framework for Revival and Rehabilitation of MSMEs.
• Petitioners also filed a Section 17 SARFAESI proceeding before the Debt Recovery Tribunal, Siliguri (S.A. No. 193 of 2024), which remains pending.
• The Court referred to Supreme Court judgments (Pro Knits, Shri Shri Swami Samarth) emphasizing that MSMEs must seek the framework’s benefit before an account is classified as NPA and must provide verifiable documents.

Final Outcome

• The writ petition (W.P.O. 198/2026) is dismissed; petitioners are not entitled to the benefit of the Framework for Revival and Rehabilitation of MSMEs.
• The grievance must be adjudicated in the pending SARFAESI tribunal proceeding.

Topics: MSME Framework, SARFAESI Act, NPA Classification