Supreme Court: Atibir Industries must pay additional Rs 125 crore to SBI ARC
Supreme Court ordered Atibir Industries to pay an additional Rs 125 crore to the SBI‑appointed ARC, confirming the NPA classification and asset assignment.
The Supreme Court, comprising the Chief Justice, Justice Joymalya Bagchi and Justice V. Mohana, delivered its judgment on 26 October 2026 in Atibir Industries Co. Ltd v. State Bank of India, holding that the borrower must pay an additional Rs 125 crore to the asset reconstruction company (ARC) appointed by the bank.
Atibir Industries had obtained a loan from a consortium of State Bank of India branches. During the COVID‑19 pandemic the borrower fell into default and the bank classified the account as a non‑performing asset (NPA) on 16 October 2020. Subsequently, the loan was transferred to Respondent 2, an ARC, for a consideration of Rs 250 crore, which the ARC paid. The borrower later contested both the NPA classification, arguing that RBI moratoriums barred such action, and the validity of the assignment, seeking relief from further payment.
The Court held that RBI circulars merely postponed, not extinguished, the bank’s right to deem an account overdue, and that Section 5 of the SARFAESI Act authorised the sale of stressed assets. Relying on the expert report, the Court found the ARC’s return calculation reasonable and upheld the assignment. Consequently, it directed Atibir Industries to remit the additional Rs 125 crore within twelve weeks, after which the ARC would release the securities and all insolvency and recovery proceedings were dismissed.
Read the judgment and its head note on DLJ: Atibir Industries Co. Ltd vs State Bank Of India (2026 INSC 1156).