2020 (9) TMI 1217 - SCH - Indian Laws

Declaration of account as NPA or not - it is submitted that no account shall become NPA atleast for a period of two months - HELD THAT - At the request of the Mr. Tushar Mehta, learned Solicitor General, the matter is adjourned for 10.09.2020. The accounts which were not declared NPA till 31.08.2020 shall not be declared NPA till further orders.

Summary

Issues:
1. Adjournment of the matter requested by the Solicitor General.
2. Submission by the Senior Advocate regarding non-performing assets (NPA) declaration.

Analysis:
1. The Supreme Court, comprising Hon'ble Mr. Justice Ashok Bhushan, Hon'ble Mr. Justice R. Subhash Reddy, and Hon'ble Mr. Justice M.R. Shah, issued an order on the matter. The Solicitor General, Mr. Tushar Mehta, requested an adjournment, leading to the matter being postponed to 10.09.2020 as per his request.

2. During the proceedings, Mr. Harish Salve, a Senior Advocate, made a submission concerning the declaration of accounts as non-performing assets (NPA). He emphasized that no account should be classified as NPA for a minimum period of two months. Consequently, the court directed that accounts not previously declared as NPAs until 31.08.2020 should maintain that status until further instructions are provided. This decision aims to provide temporary relief and stability in the financial sector by delaying the NPA classification for the specified accounts.