PEJAN vs AMARJEET SINGH

The Supreme Court held that under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), a borrower must be given an opportunity to make a representation against the classification of their account as a non-performing asset (NPA). The Court found that Devi Ispat Limited's challenge to the NPA declaration was premature as it had an alternate statutory remedy under Section 13(3A) to contest the bank's action. Consequently, the Court upheld the dismissal of the writ petition by the Calcutta High Court, affirming the need to exhaust statutory remedies before seeking judicial intervention.