Samtex Fashions Limited faces Rs 437.57283627 crore DRT claim

Samtex Fashions disclosed on 4 November 2026 that the Debts Recovery Tribunal-III, Delhi, held it jointly and severally liable for Rs 437.57283627 crore over loan dues of wholly owned subsidiary SSA International Ltd. The recovery certificate also provides for 10% simple annual interest from 20 March 2018 until realisation and Rs 1.50 lakh of costs.

What did DRT-III order Samtex Fashions to pay?

DRT-III ordered Samtex Fashions and other certificate debtors to pay Rs 437.57283627 crore to National Asset Reconstruction Company Ltd. (NARCL), together with 10% simple interest a year from 20 March 2018 until realisation and Rs 1.50 lakh in costs. The tribunal's final order in TA/446/2022 is dated 3 October 2026, while Recovery Certificate No. 44/2026 was issued on 23 October 2026.

The Rs 437.57283627 crore amount is the maximum exposure reported by Samtex Fashions under the recovery certificate, rather than a liability allocated solely to it. As Certificate Debtor No. 9, Samtex Fashions is jointly and severally liable with other debtors, and the filing does not state a separate share of the certified amount for the company.

Why is Samtex Fashions named in SSA International's case?

Samtex Fashions is named because it was the corporate guarantor for loan facilities taken by SSA International Ltd., its wholly owned subsidiary. The disclosed dues concern SSA International's term-loan and cash-credit facilities, and the proceedings are titled NARCL versus SSA International Ltd. and others.

The filing distinguishes the borrower from the guarantor: SSA International took the facilities, while Samtex Fashions provided the corporate guarantee. Samtex Fashions did not disclose the original facility amounts, the guarantee dates or how the Rs 437.57283627 crore exposure is divided among the certificate debtors.

The disclosed timeline shows the case moving into recovery during October 2026. The 3 October final order was followed by the 23 October recovery certificate, a 29 October order on NARCL's request for interim protection, and a 30 October Form No. 14 demand notice. Samtex Fashions received hard copies of those documents on 4 November 2026.

What does the demand notice require from Samtex Fashions?

The 30 October 2026 demand notice directs Samtex Fashions and the other certificate debtors to pay the certified sum within 15 days of receiving it. It was issued under Sections 25 to 28 of the Recovery of Debts and Bankruptcy Act, 1993, after the 23 October 2026 recovery certificate.

Samtex Fashions and the other debtors must also declare their asset particulars by affidavit on or before the next hearing and appear before the Recovery Officer on 4 December 2026. The 4 November disclosure does not say whether Samtex Fashions has paid any amount, filed the asset affidavit or obtained a stay of the demand notice or recovery certificate.

The 4 December 2026 hearing also follows NARCL's application seeking urgent interim protection for certain properties. In its 29 October 2026 order, Recovery Officer-II directed notice to the certificate debtors and required replies and property particulars. The filing gives no outcome from that application beyond the scheduled hearing date.

Are Samtex Fashions' assets attached or restricted?

Samtex Fashions said no property was attached under the 29 October 2026 order, because Recovery Officer-II declined NARCL's request for pre-notice attachment of immovable property. The company also stated that the order neither attaches property nor determines title.

However, the 23 October 2026 recovery certificate restrains defendants from depleting, transferring, encumbering, alienating, selling or otherwise dealing with hypothecated assets and other movable or immovable properties without first paying NARCL's claim. That restraint differs from an attachment order, which the filing says had not been made as of 4 November 2026.

The 29 October order further states that Rule 16 consequences under the Second Schedule to the Income-tax Act, 1961 apply upon service of the demand notice. As described in the filing, Rule 16 prevents a defaulter from mortgaging, charging, leasing or otherwise dealing with property without the Recovery Officer's permission.

What financial impact has Samtex Fashions disclosed?

Samtex Fashions reported maximum exposure of Rs 437.57283627 crore, plus 10% simple interest from 20 March 2018 until realisation and Rs 1.50 lakh in costs. The accumulating interest means the disclosed exposure is not limited to the Rs 437.57283627 crore certified amount.

Samtex Fashions did not disclose a provision, payment schedule, accounting charge, liquidity effect or operating impact in its 4 November 2026 announcement. It said it is evaluating the financial impact and available legal remedies with its legal team, while noting that recovery will follow the process prescribed under Sections 25 to 28 of the 1993 Act.

The sequence of orders changed the position from adjudication to recovery. The 3 October 2026 final order established the dues, the 23 October certificate formalised recovery, and the 30 October notice set a 15-day payment direction; meanwhile, the 29 October order declined pre-notice attachment. No subsequent legal or financial outcome was disclosed on 4 November.

Conclusion

Samtex Fashions has disclosed joint and several liability as guarantor for SSA International's loan facilities, with a maximum certified exposure of Rs 437.57283627 crore, continuing 10% simple annual interest from 20 March 2018 and Rs 1.50 lakh in costs. The filing also records asset-dealing restrictions after service of the demand notice, although it reports no attachment order or title determination as of 4 November 2026.

The next disclosed event is the 4 December 2026 appearance before the Recovery Officer, when replies and property particulars are relevant to NARCL's interim-protection application and the demand process. Samtex Fashions has said it is assessing financial impact and legal remedies, and any payment, asset-affidavit filing, legal relief or further disclosure remains unresolved in the announcement.