Benimadhab Construction Private Limited & Another Vs Reserve Bank of India & Ors. (Calcutta High Court)
Summary: The Calcutta High Court allowed WPA No. 23190 of 2025 filed by Benimadhab Construction Private Limited & Another and set aside the order dated 19th June, 2025 issued by the respondent bank. The petitioners had availed a loan in 2012, last renewed for one year till 31st December, 2024 with a sanctioned amount of Rs. 150 Lakhs. The bank classified the account as NPA on 28th January, 2025 and subsequently issued a notice under Section 13(2) of the SARFAESI Act on 19th June, 2025. The petitioners contended that the account did not satisfy the RBI’s NPA classification requirements. The bank relied, among other things, on the reduction of the drawing limit and alleged non-submission of monthly stock statements. The Court considered Clause 2.1.2 and Clause 2.2 of the RBI Master Circular dated 2nd April, 2024 and found that the petitioners had deposited a total of Rs. 09,14,000/- between 30th October, 2024 and 28th January, 2025. Consequently, the Court found that neither any amount was overdue for more than 90 days nor could the account be treated as ‘out of order’. The Court also considered the bank’s correspondence concerning stock statements and found its case inconsistent with that correspondence. The order dated 19th June, 2025 was therefore set aside and quashed, with the bank directed to act in accordance with the Master Circular dated 2nd April, 2024.
