The Karnatak High Court stated that the benefits of the restructuring or recovery/rehabilitation system, which has become an impatible asset (NPA), micro, small and medium enterprise (MSME) is admissible.
Justice M. Nagaprasann approved an order and refused the petition by the M/S Metro Steel section, which challenged the proceedings initiated by the state bank of India to get approximately 18.5 crore loans due to a petition-firm.
The petitioner was argued that the advantage of rectification and restructuring the loan amount, as provided in the announcement, issued by the Indian Reserve Bank (RBI) in 2015, according to section 19 MSME development negotiations, was to be considered before recovery with the provision of securitization and reconstruction of financial interests and interest. 2006, and that these are interests, 2006.
However, the High Court stated that the advantage of the RBI announcement and its interpretation by the Top Court in the case of the knitted VS. CANARA Bank Board of Directors would not be available to the petitioners because it has already been closed when the bank resorted to revive, as set out in the RBI announcement in 2015.
The Court also pointed out that during the friendliness of his petition he told the petitioner to the bank, suggesting that the company ended and closed the operation two years ago.
“If the company disappeared and the operation has disappeared two years ago, it cannot benefit that the company is MSME and the announcement issued under the law MSMED or even the judgment of the top court in the matter for Knis,” the court said.
Published – May 5, 2025 20:39
