V. Noble Kumar vs Standard Chartered Bank and Ors.
Right of banks or financial institutions - Right arising only when borrower committing default in payment of secured debt and his account in respect of such debt was classified as a non-performing asset
The right of the banks or financial institution to resort to the provisions of SARFAESI Act 2002 would arise only in the event where any borrower, who was under liability to a secured creditor under a security agreement, made any default in payment of a secured debt or any instalment thereof and his account in respect of such debt was classified by the secured creditor as a non-performing asset.
