No personal hearing mandatory by banks before classifying borrower’s account as fraud

State Bank of India Vs Amit Iron Private Limited & Ors. (Supreme Court of India) Supreme Court held that borrower doesn’t possess any legal right to a personal hearing by banks before classifying their account as fraud account. Accordingly, the civil appeal is partly allowed. Facts- On 20.08.2019, the loan account of respondent No.1 was classified as a Non-Performing Asset (NPA) by the appellant-State Bank of India on account of defaults in repayment obligations. On 27.12.2023, the appellant-Bank issued a show cause notice to the respondents alleging various acts of non-compliance with ...