Key Quantitative Figures

  • Total demand amount: ₹437,57,28,362.70 (Rupees Four Hundred Thirty Seven Crores Fifty Seven Lakhs Twenty Eight Thousand Three Hundred Sixty Two and Paise Seventy Only)
  • Interest rate: 10% simple interest per annum
  • Interest period: From 20.03.2018 till realization
  • Additional costs: ₹1,50,000

Dates of Action

  • Recovery Certificate issued: 23.10.2026
  • Demand Notice dated: 30.10.2026
  • Order dated: 29.10.2026
  • Documents received by company: 04.11.2026
  • Next hearing date: 04.12.2026
  • Payment deadline: Within 15 days of receipt of notice

Parties Involved

  • Authority: Recovery Officer, Debts Recovery Tribunal-III, Delhi (DRT-III)
  • Certificate Holder: National Asset Reconstruction Company Ltd. (NARCL)
  • Certificate Debtors: M/s SSA International Ltd. & Ors. (including Samtex Fashions Limited as Certificate Debtor No. 9)
  • Subsidiary: M/s SSA International Ltd. (wholly owned subsidiary of Samtex Fashions Limited)

Case References

  • Original Case: TA/446/2022
  • Recovery Certificate: RC/44/2026
  • I.A. Diary No.: 155/2026

Legal Basis

  • Recovery of Debts and Bankruptcy Act, 1993 (Sections 25 to 28)
  • Income-tax Act, 1961 (Rule 2 of the Second Schedule)
  • SEBI Listing Regulations (Regulation 30 read with sub-para 20 of Para A of Part A of Schedule III)

Restrictions Imposed

  • Company restrained from depleting, transferring, encumbering, alienating, selling or otherwise dealing with hypothecated assets or other movable/immovable properties without first paying the claim
  • Rule 16 of Second Schedule to Income-tax Act applies: company cannot mortgage, charge, lease or otherwise deal with its property without permission of Recovery Officer
  • No pre-notice attachment of immovable property ordered

Background

The company acted as Corporate Guarantor for loan facilities (term loan and cash credit facilities) availed by its wholly owned subsidiary M/s SSA International Ltd. The liability has been adjudicated by DRT-III vide Final Order dated 03.10.2026 in TA/446/2022, holding the certificate debtors jointly and severally liable.

Financial Impact

The maximum exposure under the Recovery Certificate is ₹437,57,28,362.70 plus interest at 10% simple interest per annum from 20.03.2018 till realization and costs of ₹1,50,000. The liability is joint and several with other certificate debtors. Recovery will be made under Sections 25 to 28 of the Recovery of Debts and Bankruptcy Act, 1993.

Company Response

The company is evaluating the financial impact and legal remedies available, and is consulting its legal team. Further updates will be provided as required under the Listing Regulations.

Additional Requirements

  • Certificate debtors must declare particulars of their assets on affidavit on or before the next hearing date
  • Must appear before the Recovery Officer on 04.12.2026