Timely submission of renewal documents is essential to avoid NPA classification.

O R D E R

The above Review Petition is filed against the judgment of this Court dated 06.08.2025 in WPC No. 5466/2025.

2. Taking note of the contentions raised on behalf of the review petitioners, this Court passed the following order on 20.11.2025:

“The respondent Bank is granted a week’s time to file a counter to the delay petition. It is submitted that, as against the judgment in W.P(C) No. 5466 of 2025, the bank had filed W.A.No.2281 of 2025 and the same was reserved for judgment on 13.10.2025. It is also submitted that there was no stay of operation of the judgment in W.P(C) No. 5466 of 2025 and without waiting for the judgment in the writ appeal, the bank is proceeding against the properties of the petitioners, despite the notices issued to the MSME units concerning the petitioners being quashed and that the action against the review petitioners was solely on account of the MSME units falling into arrears.

2. The bank is directed to respond to the above submission. Since there is a threat of dispossession, the status quo as on date shall be maintained till the next posting date.

Post on 26.11.2025.”

3. In response to the same, an affidavit has been filed by the 2^nd respondent, which reads as follows:

“This Hon’ble Court had directed this Respondent to file an Affidavit regarding the NPA classification of the 3" Petitioner. It is humbly submitted that in W.P.(C) No.32498/2023. this Respondent bank had already filed a counter affidavit pointing out that the account of the 3" Petitioner was classified as NPA as the limit expired and that the Petitioner did not submit the necessary renewal documents on time. He had to provide valid lease agreement. tax receipt and other requisite documents for the renewal on time as the Petitioner failed in providing the requisite documents for the renewal; the limit expired and the accounts has classified as NPA. Copy of the aforesaid Counter Affidavit is produced as Annexure-R2(a) along with this Affidavit.”

The Bank had also produced an affidavit filed in the earlier case as Annexure R2(a), which reads as follows:

“Without prejudice to the above, it is humbly submitted that the account was classified as NPA on 06.04.2023. The account was classified as NPA as the limit expired. The petitioner did not submit the necessary renewal documents on time. He had to provide valid lease agreement, tax receipt and other requisite documents for the renewal on time as the petitioner failed in providing the requisite documents for the renewal, the limit expired and the account has classified as NPA.”

5. The third petitioner’s account was classified as NPA, as he allegedly did not submit the necessary renewal documents on time and also for the reason that the limit expired. Under such circumstances, classification of the third petitioner's account as NPA has no bearing on the judgment quashing the notices as regards the MSME units in question are concerned.

Given the above, there is no merit in the review petition, and the same is dismissed.