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Head Note

Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002  - Section 2 , Constitution of India, 1950  - Article 14

Non Performing Assets - Classification of Borrower - Submission that the amendment of the definition of the expression 'non- performing asset' under Section 2(1)(o) is bad on account of excessive delegation of essential legislative function held to be untenable and is required to be rejected - Further submission that by authorizing different REGULATORS to prescribe different norms for the identification of a NPA with reference to different CREDITORS amount to unreasonable classification rejected for the reason that all the CREDITORS do not form a uniform/homogenous class - To say that enabling them to follow different norms would be violative of Article 14 would be wholly untenable - Declared that the amended definition of the expression "NPA" under Section 2(1)(o) of the Act is constitutionally valid.

Topic(s)-SARFAESI - Non Performing Assets - Classification of Borrower