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IN THE HIGH COURT AT CALCUTTA
ANIRUDDHA ROY
Dooars Jute Textiles Private Limited – Appellant
Versus
State Bank Of India – Respondent
| Table of Content |
|---|
| 1. interlocutory application context and facts presented. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10) |
| 2. arguments concerning statutory obligations under rbi guidelines. (Para 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21) |
| 3. counterarguments raised by the bank regarding compliance. (Para 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32) |
| 4. court's analysis of rbi guidelines’ applicability. (Para 37 , 38 , 39 , 40 , 41 , 42 , 43 , 44) |
| 5. final observations on the legal obligations of both parties. (Para 45 , 46 , 47 , 48 , 49 , 50 , 51 , 52 , 53) |
| 6. order and final conclusion regarding the application. (Para 54 , 55) |
ANIRUDDHA ROY, J.:
In Re: IA No. GA-COM/1/2024
Facts:
1. This is an interlocutory application filed by the plaintiffs/petitioners, inter alia, praying for the following reliefs:-
(a) Injunction restraining the Respondent, its men, agents, servants, representatives and assigns from giving any effect or further effect or acting in terms of or in furtherance of the demand notice dated December 6, 2023.
(b) Ad interim orders in terms of prayers above;
(c) Such further and/or other order or orders be passed, direction or directions be given as Your Lordship
The court ruled that the borrower’s failure to timely assert its MSME status and follow regulatory guidelines allowed the bank to declare the loan account as NPA and pursue recovery without further o....
Banks must adhere to the Framework for Revival and Rehabilitation of MSMEs before classifying accounts as non-performing assets, obligating both banks and MSMEs to fulfill their respective duties.
Banks must follow MSME Notification procedures to identify stress in accounts before classifying them as NPAs. Failure to do so legitimizes subsequent enforcement measures under the SARFAESI Act.
The classification of accounts as Non-Performing Assets (NPA) under the SARFAESI Act is valid if MSMEs do not timely assert their status, failing to invoke protections under the MSMED Act's revival f....
Borrowers classified as MSMEs must assert their status before NPA classification to invoke benefits under the SARFAESI Act; failure to do so precludes subsequent claims.
Borrowers classified as MSMEs must assert their status before NPA classification to invoke benefits under the SARFAESI Act; failure to do so precludes subsequent claims.
Petitioners did not establish MSME status prior to loan classification as NPA; statutory remedies under SARFAESI Act must be availed instead of writ jurisdiction.
Instructions/Directions issued by Central Government under Section 9 of MSMED Act and by RBI under Sections 21 and 35A of Banking Regulation Act, 1949 have statutory force and are binding to all Bank....
Point of Law : Supreme Court had, in unambiguous terms, observed that, despite the wide powers under Article 226 of the Constitution of India, the practice of entertaining writ petitions pertaining t....
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