M/S. PRESTIGE LIGHTS LTD. vs STATE BANK OF INDIA

The Supreme Court held that under Section 13(2) and Section 13(4) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, a borrower must be given an opportunity to present their case before the bank takes action to enforce security interests. The Court found that the bank's failure to consider the appellant's representation before proceeding with the takeover was a violation of the principles of natural justice. Consequently, the Court set aside the High Court's dismissal and directed the bank to consider the representation before taking further action.