COMMON CAUSE (A REGD. SOCIETY) vs UNION OF INDIA

The Supreme Court addressed the issue of Non-Performing Assets (NPAs) in the banking sector, emphasizing the need for effective measures to prevent defaults by borrowers. The Court noted that the petitioner had proposed various suggestions to the Union Government, which were largely rejected, except for one regarding the definition of 'willful defaulter'. The Court held that the Union Government must consider the suggestions aimed at enhancing accountability and ensuring creditworthiness of borrowers, thereby impacting the management of NPAs under the Recovery of Debts due to Banks and Financial Institutions Act, 1993.