High Court Sets Aside Axis Bank NPA Orders

Authority: Calcutta High Court, Court No.6 (Banking & Probate)

Order Date: 17 July 2026

Case Overview

• Parties: Petitioners – Pyaridevi Chabiraj Steels Pvt. Ltd. & others; Respondent – Axis Bank Limited & another.
• Background: Petitioners filed SARFAESI application (S.A. No. 90 of 2019) challenging demand notice dated 27 Aug 2018 and the classification of the loan account as a Non‑Performing Asset (NPA).
• DRT Proceedings: Debts Recovery Tribunal‑1, Kolkata, on 5 Apr 2023 allowed the SARFAESI application, set aside the demand notice, and permitted the bank to issue a fresh notice. A subsequent notice dated 9 Sep 2024 was issued and challenged in SA 293 of 2025.
• Review Application: Petitioners filed review application (RA 01 of 2024) which was dismissed by the Tribunal on 16 Jun 2026. Interlocutory applications (IA 404 of 2026 and IA 855 of 2026) were also refused.
• Contention: Petitioners argued that the issue of NPA classification, expressly pleaded in the SARFAESI application, was not considered by the Tribunal, warranting fresh adjudication.

Final Outcome

• The High Court sets aside the Tribunal orders dated 22 Nov 2023 and 16 Jun 2026.
• SA 90 of 2019 is remanded to the Debts Recovery Tribunal‑1, Kolkata, solely to decide the issue of NPA classification, to be concluded within four weeks of receipt of a server copy of this order, without unnecessary adjournments.
• An interim order restrains Axis Bank from disturbing possession of the secured assets in question until the Tribunal disposes of SA 90 of 2019.
• Parties may take appropriate steps before the Tribunal in SA 293 of 2025.
• No order as to costs.
• Certified photocopy of the order to be supplied on request after compliance with usual legal formalities.

Topics: Banking Regulation, SARFAESI Act