DRAT Orders Release of PC Jeweller Showrooms After Settlement with Consortium of Banks [Read Order]
The release of the keys is contingent upon the filing of affidavits by the consortium of banks confirming that PC Jeweller has complied with all terms of the settlement and made all required payments.
The Debts Recovery Appellate Tribunal (DRAT) has ordered the release of several PC Jeweller showrooms, acting on a joint application filed by the company and its lead lender, the State Bank of India, following a comprehensive debt settlement with a consortium of banks.
Justice Anil Kumar Srivastava allowed the miscellaneous application, noting that it was filed in compliance with a previous DRAT order dated 27.02.2025. This order had disposed of a recovery appeal as 'settled' based on a settlement agreement dated 30.09.2024 between PC Jeweller and a consortium of 14 banks, which had authorized the SBI to file the joint application for the release of the locked premises.
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The order brings a resolution to a long-standing recovery proceeding initiated by the SBI against PC Jeweller. The Debt Recovery Tribunal (DRT-III, Delhi) had previously appointed receivers to take control of 28 of the company's showrooms in Delhi and the NCR, sealing the premises and inventory as part of the debt recovery process under Section 19 of the Recovery of Debts andBankruptcy Act.
The tribunal's order establishes a clear procedure for the handover. The Registrar of DRAT Delhi will hand over the keys to five specific showrooms to appointed Advocate Commissioners. These commissioners will then oversee the transfer of possession to PC Jeweller in the presence of a bank representative, who will certify that the seals of the premises are intact and that the company has received the keys.
The release of the keys is contingent upon the filing of affidavits by the consortium of banks confirming that PC Jeweller has complied with all terms of the settlement and made all required payments. The tribunal also directed that PC Jeweller pay a fee of Rs. 50,000 to each Advocate Commissioner for carrying out the exercise, effectively concluding this phase of the legal dispute and allowing the company to regain control of its business assets.
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