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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
NIRAL R.MEHTA
S M Patrawala Through Its Sole Proprietor Shehzad Minocher Patrawala – Appellant
Versus
Authorised Officer , Bank Of India – Respondent
ORDER :
NIRAL R.MEHTA, J.
[1] By way of this petition under Articles 226 and 227 of the Constitution of India, the petitioners have challenged the communication dated 14th August 2025 and all other consequential actions arising under the provisions of Section 13(2) and 13(4) of the SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT , 2002 (for short, “the SARFAESI Act”).
[2] Heard learned Senior Advocate Mr. Jal Unwalla assisted by learned advocate Mr. Masoom K. Shah for the petitioners.
[3] Learned Senior Advocate Mr. Jal Unwalla for the petitioners, at the outset, submitted that while deciding the application by the Standing Committee on framework for revival and rehabilitation of the Micro, Small and Medium Enterprises (for short, “MSME Framework”), as per Clause 4(6) and Clause 4(8) of the Notification dated 29th May 2015 issued by the Central Government, though it was the obligatory on the part of the Committee to notify the concerned enterprise i.e. the petitioners, there was no notice and / or intimation given to the petitioners to make its case good before the Committee. Learned Senior Advocate Mr. Unwalla further submitted that as p
The court emphasized that banks must adhere to the MSME Framework before classifying an MSME account as NPA and highlighted the responsibility of MSMEs to engage with the process timely.
Borrowers classified as MSMEs must assert their status timely to benefit from protective frameworks; failure to do so precludes relief under the SARFAESI Act.
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.
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....
The court upheld the shared responsibility of MSMEs and lenders in identifying loan stress, clarifying the application of the Framework for Revival and Rehabilitation of MSMEs.
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 ....
Timely assertion of MSME status is essential to invoke protections against loan enforcement actions; delays may bar legal recourse.
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....
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