JUDGMENT

N.V. RAMANA, CHIEF JUSTICE:

1. In this batch of writ petitions, the petitioners are assailing the constitutional validity of Section 2(1)(o) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as ‗SARFAESI Act‘) as well as the legality of the Circular dated 1st July, 2013 of the Reserve Bank of India (hereinafter referred to as ‗RBI‘).

Petitioner's submissions

2. Mr. Ramesh Singh, learned counsel for the petitioners, pointed out that Section 2(1)(o) of the SARFAESI Act defines Non-Performing Asset (for short, ‗NPA‘) to mean an asset / account of a borrower, which had been classified by a bank / financial institution as sub-standard, doubtful or loss asset in accordance with the RBI guidelines relating to asset classification or similar guidelines issued by banks / financial institutions. He submitted that the SARFAESI Act did not define or even indicate any guideline for defining as to what is sub-standard, doubtful or loss asset.

3. According to him, the Parliament by delegating such an essential legislative function and that too, in an uncontrolled manner inter alia by not setting the limits of t