Case Law Analysis
|Andhra Pradesh High Court
SARFAESI Act | Prior DRT Findings on Illegal NPA Declaration Must Precede Auction Finalization : Andhra Pradesh HC
Andhra Pradesh High Court mandates Debt Recovery Tribunal to adjudicate a borrower's challenge to NPA classification before proceeding with auction, reinforcing that erroneous NPA declarations cannot be ignored. The ruling stays auction finalization until the DRT decides the pending application within three weeks, protecting borrowers from coercive recovery based on flawed asset classification.