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 29th 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 challenged the impugned common order dated 11.01.2024 passed by the High Court of Judicature at Bo...