Banks and NBFCs obliged to adopt restructuring process before classification of account as NPA: Supreme Court

PRO Knits Vs Board of Directors of Canara Bank & Ors. (Supreme Court of India)

Supreme Court held that Banks/ Non-Banking Financial Companies (NBFCs) are obliged to adopt restructuring process of MSME as contemplated in Notification dated 29^th May 2015 prior to classification of account as Non-Performing Assets (NPA).

Facts- The Appellants claim themselves to be the Micro, Small and Medium Enterprises (MSMEs) registered under the Micro, Small and Medium Enterprises Development Act, 2006, have

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