Sarfaesi Act on Msme unit declaring NPA without restructuring
Feb 26, 2026
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Banking Law
► legal question We are MSME manufacturing company based at Asansol West Bengal.
Bank declared our unit as NPA without taking any without following the framework for revival and rehabilitation of MSME notified by the central government vide notification dated 29th may 2015 under power of section 9 of MSMED Act.
The above notification was further revised by Reserve Bank of India vide notification dated March 2016 and RBI issued Master Direction i.e. ( RBI Lending to micro & medium Enterprises sector) direction 2016 in exercise of the power conferred by section 21 and 35 A of Banking Regulation Act . The honourable Supreme Court ruling on NPA OF MSME UNIT has also given that MSME Unit cannot be NPA until the bank takes all measures for revival and rehabilitation of the unit as per MSME ACT
Now after this they considered the formation of the Revival and rehabilitation Committee and again Bank adopted tactics by not following guidelines in Formation of Revival and rehabilitation Committee . Regional Manager becomes chairman and no body was from Msme Dept .
We filed Writ petition in High court , kolkata under 226 .
We have to challenge two things
1. Before revival and rehabilitation of our unit bank declared our unit as NPA
2. Formation of committee was not as per RBI guidelines .
Case was listed on 14th November, 25 and hearing on 21st nov,25 but opposite party didn't turn up .
After that even after mentioning several times case is not listed.
We have received possession notice from Bank 13(4) on 16/02)26 from Stressed Asset Recovery Branch .
Earlier we received 13(4) dated 2nd September,2025 but in this notice it is Mentioned that earlier all notice is revoked / recalled.
What can we do we have very critical financial situation as of now.
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