Bhaskar International Private Limited & Ors. Vs State Bank of India & Ors. (Supreme Court of India)
Big Borrowers Get Red Carpets, Small Borrowers Get Interrogation Rooms: SC Slams Casual Sanction of ₹8 Cr Loan After Borrower Defaults From Day One
Corporate Crores Cleared Casually, Small Loans Scrutinised Ruthlessly: SC Pulls Up SBI
In a significant observation on banking practices, the Supreme Court dismissed the SLP filed by borrower company M/s Bhaskar International Pvt. Ltd. against recovery proceedings initiated by SBI under the SARFAESI Act. The borrower had availed a loan of about ₹8.09 crore in 2019, but admittedly defaulted from the very first instalment and did not repay “even a single farthing” thereafter. The Court held that an offer made in 2025 to repay only the principal amount, nearly six years after availing the loan, was “frankly, too little too late.” The Court also noted that the borrower had already approached the DRT challenging the Section 14 order and could not simultaneously seek indulgence before the Supreme Court.
However, while refusing interference, the Supreme Court made strong remarks against banking institutions, particularly SBI, observing that there appeared to have been negligence in sanctioning such a huge loan without properly assessing the borrower’s repayment capacity. The Court remarked that banks often appear lenient while sanctioning massive loans to bigger entities, but become excessively stringent and cumbersome when ordinary individuals seek small personal loans. The Bench observed that such practices may, in some situations, amount to “borderline harassment” of small borrowers. Though the Court clarified that it was not suggesting dilution of lending norms, it emphasized that banking procedures should be made fairer, easier and more balanced, especially for persons belonging to the lower economic strata.
While dismissing the SLP, the Court granted the borrowers a final two-week protection to pursue interim relief before the DRT and directed maintenance of status quo till 02.06.2026.
FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER
