DRT-III allows NARCL application in SSA International matter; counter claim dismissed
Samtex Fashions Ltd has informed BSE about an order of the Debt Recovery Tribunal-III, Delhi in the matter of NARCL Vs. SSA International Ltd. & Others.
By ScoutQuest · · 2 min read
- Aggregate Amount Involved
- approx Rs. 435.02 Crore, plus cost and pendente lite & future interest @10% p.a.
- Interest Rate
- 10% p.a. till payment in full
- Order Date
- 03 October 2026
What has been disclosed
Samtex Fashions Limited has informed the exchanges about a development in an ongoing litigation matter involving its wholly owned subsidiary, SSA International Ltd. The company states that it was the Corporate Guarantor in the loan applications of that subsidiary.
- The matter is titled NARCL Vs. SSA International Ltd. & Others, before the Debt Recovery Tribunal-III, Delhi (DRT-III).
- Over time, the consortium bankers, later represented by NARCL, shared an application bearing TA No. 446/2022 against the subsidiary, including the company as Corporate Guarantor.
- In response, the subsidiary shared a counter claim bearing No. NDN/31/2023 (TCC). Both matters were pending before DRT-III.
The order
The order is dated 03 October 2026 and was received by the company on 15 October 2026.
- The application (TA No. 446/2022) was allowed in favour of the applicant, NARCL.
- The counter claim (CC No. NDN/31/2023) of the company was dismissed, with no order to cost.
The amount involved
- The aggregate amount involved under the litigations is, as mentioned in the order of DRT-III, approx. Rs. 435.02 Crore.
- In addition, there is cost and pendente lite & future interest at 10% p.a. till the payment in full.
What the update says on other points
- On litigation against key management personnel, promoter or ultimate person in control, and on settlement of proceedings, the update states "Not Applicable".
- The company has stated that the intimation is also being uploaded on its website.
Simple explanation
A Corporate Guarantor is a company that stands behind a loan taken by another entity and is answerable if that borrower does not repay. Here, the company stood as guarantor for loans taken by its wholly owned subsidiary, SSA International Ltd. The tribunal has allowed NARCL's application and not accepted the company's counter claim. The company has placed on record the amount involved and the interest rate stated in the order; the update itself does not set out any impact on the company's financial position or any next step.
Also from Samtex Fashions
Demise of Non-Executive Independent Director Preeti Saxena; board seat vacant
16 Oct 2026
Change of Registered Office to Greater Noida
29 Sep 2026
Supreme Court dismisses company's appeal in Income Tax matter involving Rs. 1.07 Crore
24 Sep 2026
More numbers
- Aggregate amount involved under the litigations (as per DRT-III order)approx. Rs. 435.02 Crore
- Pendente lite and future interest rate@10% p.a.
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