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HIGH COURT OF DELHI
MS KHUKHRAIN BUILDERS & ORS. – Appellant
Versus
INDIAN BANK & ORS. – Respondent
JUDGMENT :
DHARMESH SHARMA, J.
CM APPL. 54730/2024 - (EXMP)
1. Allowed, subject to all just exceptions.
2. The application stands disposed of.
CM APPL. 54731/2024
3. This application has been moved on behalf of the petitioners seeking permission to file lengthy list of dates and synopsis.
4. For the reasons stated in the application, the application is allowed.
5. The application stands disposed of.
W.P. (C) 13094/2024 & CM APPL. 54729/2024
6. The petitioner No.1 is a partnership firm, which along with its partners, who are arraigned as petitioners No. 2 to 4, hereinafter referred to as the petitioners, invoke the writ jurisdiction of this Court under Article 226 of the Constitution of India, 1950 for directions to the respondents not to curtail the fundamental rights of the petitioners under Articles 19(1)(g), 21 and 300A of the Constitution of India.
7. Learned counsel for the respondents No.1 and 2/Indian Bank as well as learned counsel for respondent No.5 are present on advance notice.
8. It is the case of the petitioners that it is registered as an MSME [Micro, Small and Medium Enterprises]. Shorn of unnecessary details, the petitioners availed a loan facility from the respondent No.2/Ind
Timely assertion of MSME status is essential to invoke protections against loan enforcement actions; delays may bar legal recourse.
MSMEs must raise their status before loan accounts are classified as NPAs; failure to do so precludes later claims for benefits 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.
The court upheld that simultaneous proceedings under the SARFAESI Act and the Recovery of Debts and Bankruptcy Act are permissible, and reiterated principles of res judicata and the responsibilities ....
The jurisdiction of a writ petition must align with the location where the cause of action arises, not merely the respondent's address.
MSMEs must timely assert their status to benefit from statutory protections under the SARFAESI Act; failure to do so precludes them from raising claims at a later stage.
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.
Borrowers must timely assert MSME status to access protective benefits under the MSMED Act; simultaneous recovery proceedings under SARFAESI and RDB Acts are permissible.
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