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IN THE HIGH COURT OF KERALA AT ERNAKULAM
BASANT BALAJI TH, J
M/S. I J GOLD WORKS – Appellant
Versus
STATE BANK OF INDIA – Respondent
| Table of Content |
|---|
| 1. background of the petitioners and loan status. (Para 1 , 2 , 3) |
| 2. claim for msme status and bank's actions. (Para 5) |
| 3. legal framework concerning msme and npa classification. (Para 6 , 7 , 9) |
| 4. judicial findings on the bank's obligations and the petitioners' requirements. (Para 8 , 10 , 11 , 12) |
JUDGMENT
(Dated this the 5th day of November 2025)
The 1st petitioner is a firm involved in the business of jewellery manufacturing using gold and silver. The firm availed a cash credit facility of ₹50 lakhs. The 2 nd petitioner is the proprietor of the 1" petitioner's firm. The overdraft facility was availed from the respondent bank as per the relevant RBI circulars. Till 2019, there was prompt repayment of the loan amount. Due to COVID-19, there was a serious irregularity in the repayments. The respondent bank declared the 1st petitioner's account as a Non-Performing Asset (NPA) on 18.11.2024, and Ext.P2 notice under Section 13 (2) of the SARFAESI Act was issued on 19.11.2024.
2. It is the case of the petitioners that the respondent bank recognised the 1st petitioner as a (Micro, Small, and Medium Enterprise) MSME and accordingly, Ext.P3 letter was issued to devise a stra
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