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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
| Table of Content |
|---|
| 1. challenge to the sarfaesi act communication. (Para 1) |
| 2. ad-interim relief granted. (Para 2 , 7) |
| 3. arguments on compliance with msme framework. (Para 3 , 4) |
| 4. petitioners have symbolic possession. (Para 5) |
| 5. notice issued and matter to be considered. (Para 6) |
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
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.
The classification of an account as NPA does not prevent banks from considering MSME revival requests under specific frameworks.
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.
Borrowers classified as MSMEs must provide verifiable evidence to banks before their accounts are classified as Non-Performing Assets, as protections under MSMED Act and SARFAESI Act apply only when ....
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