Saturday, March 7, 2026

Latest:

Unconditional Withdrawal of Civil Suit – Whether Bar to Section 11 MOFA Application for Deemed Conveyance – Applicability of Order 26 Rule 1(4) CPC
Bombay HC Quashes Deemed Conveyance – Prior Civil Suit Unconditional Withdrawal Bars Fresh Application of Society under Section 11 MOFA.
Section 11 of MOFA – Deemed Conveyance – Postponement till formation of Apex Body of Societies
Bombay HC – Section 11 of MOFA – Deemed Conveyance – Objections of Promoter that Project was not complete and balance FSI is available for future development.
Bombay HC Clarifies Membership Law – Unregistered Transfers Cannot Confer Housing Society Rights and Ownership

MSME Revival Framework & protection against NPA- Not automatic

August 16, 2025 legaldeli

Judgment dated 28.7.2025 of the Supreme Court of India in Writ Petition (Civil) No.684 of 2024 of Shri Shri Swami Samarth Construction & Finance Solution and another Vs. The Board of Directors of NKGSB Coop Bank Ltd & others

MSME Revival Framework & protection against NPA- Not automatic

The respondent Bank had declared the account of the petitioner – enterprise under MSMED Act as NPA and issued the demand notice under Section 13(2) of the SARFAESI Act.

This was challenged as violative of the Notification dated 29.5.2015 on Framework for Revival and Rehabilitation of Micro, Small and Medium Enterprises.

HELD that the terms of the Framework for revival do not prohibit the lending bank / secured creditor if it has no conscious knowledge that the borrower is an MSME, to classify the account of defaulting MSME as NPA and even to issue the section 13(2) demand notice without such identification of incipient stress in the account of the defaulting borrower – MSME. However, on receipt of demand notice, the borrower asserts that it is an MSME and claims the benefit of the Framework citing reasons supported by an affidavit, the bank would then be mandatorily bound to consider such claim keeping further action under SARFAESI Act in abeyance.

Leave a Reply Cancel reply

I HAVE READ THE DISCLAIMER AND AGREE TO IT.

User Acknowledgement

By proceeding further and clicking on the "AGREE" button herein below, I acknowledge that I of my own accord wish to know more about LegalDeli for my own information and use. I further acknowledge that there has been no solicitation, invitation or inducement of any sort whatsoever from LegalDeli or any of its members to create an Attorney-Client relationship through this knowledge site. I further acknowledge having read and understood the Disclaimer below.

Disclaimer
About: This knowledge-site (www.LegalDeli.in) is owned and operated by LegalDeli (“NDA”), and is a resource for your informational and educational purposes only.

No Warranty: NDA does not warrant that any content or information contained on this knowledge-site is accurate, correct, complete or up-to-date, and hereby disclaims any and all liability to any person for any actual or threatened loss or damage caused by errors or omissions, whether such errors or omissions result from negligence, accident or otherwise. NDA assumes no liability for the interpretation and/or use of the content and/or information contained on this knowledge-site, nor does it offer any warranty of any kind, either expressed or implied in relation to such content or information.

Third-Party Links: NDA does not intend that links / URLs contained on this knowledge-site re-directing users to third party websites be considered as referrals to, endorsements of, or affiliations with any such third party website operators. NDA is not responsible for, and makes no representations or warranties, express or implied, about the content or information contained on such third party websites to which links may be provided on this knowledge-site.

No Legal Advice: By clicking ‘I agree’ and proceeding further, you acknowledge, represent and undertake that you on your own accord wish to know more about NDA, its capabilities and research content and information contained on the knowledge-site, for your own knowledge and personal use. The content and information contained on this knowledge-site should not be construed as nor relied upon as legal advice. You as a reader or recipient of content or information contained in this knowledge-site should not act, nor refrain from acting, based upon any or all of such content or information, but should always seek the advice of competent legal counsel licensed to practice the relevant law in the appropriate jurisdiction.

No Attorney-Client Relationship: This knowledge-site is not intended to be and you should not consider the content or information contained therein to be an advertisement, solicitation, inducement or invitation for an Attorney-Client relationship. Transmission, receipt or use of this knowledge-site, including content and information contained therein, does not constitute nor create an Attorney-Client relationship between NDA and you.