DRT-I Kolkata disposes OA/86/2005 as settlement payment satisfies SASF claim

DRT-I, Kolkata passed a Final Order dated 06 October 2026 in OA/86/2005 (Stressed Assets Stabilisation Fund vs. Allied Resins and Chemicals Ltd, now ARCL Organics Ltd).

Wed 7 Oct 2026

Settlement Amount Paid

₹8,22,94,500/-

Interest Paid

₹21,95,394/-

Final Order Date

06 October 2026

Order received from DRT-I, Kolkata

ARCL Organics Limited has informed the exchanges that it has received a Final Order dated 06 October 2026 passed by the Debts Recovery Tribunal-I, Kolkata in the matter OA/86/2005 - Stressed Assets Stabilisation Fund vs. Allied Resins and Chemicals Ltd, now known as ARCL Organics Ltd. The communication was received on 07 October 2026.

Figures recorded in the order

• Settlement amount paid by the Company: ₹8,22,94,500/-
• Interest paid by the Company: ₹21,95,394/-
• Outcome: OA/86/2005 stands disposed of, as the claim of the Applicant Bank has been satisfied in terms of the settlement agreement, under Section 19(20A) of the Recovery of Debts and Bankruptcy Act, 1993.

What the terms mean

The Debts Recovery Tribunal is an authority that hears recovery cases shared by lenders. A settlement arrangement here means the Company and its secured creditors agreed on an amount to close the claim, and the Tribunal recorded the payments made and closed the case on that basis.

Points noted in the disclosure

• The settlement amount and the interest have already been paid, as recorded by the Tribunal.
• The Company considers the matter to have been resolved, and states that no further financial liability is envisaged in respect of the claim covered under the said OA, pursuant to the settlement.
• No aberrations or non-compliances were identified by the authority, and no penalty, restriction or sanction was imposed pursuant to the communication.
• The Company is entitled to obtain the No Objection Certificate (NOC)/release of charge and related title documents in respect of the land properties offered as security to SASF and other Financial Institutions.
• The Company's main land at Rampur, where its existing plant and machinery are situated and where its manufacturing operations are currently being carried out, will be released from the security/encumbrance and become free from such charge.

Subject to formalities

The entitlement to the NOC and the release of charge is stated to be subject to completion of the requisite documentation and formalities with the concerned institutions.

How this can be perceived

The closure of a recovery proceeding, together with the stated release of an encumbrance over the main land on which manufacturing operations are carried out, can be read as removing a restriction on a key operating asset. The disclosure also records that the related payments have already been made and that no penalty was imposed.

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