Supreme Court grants adjournment, delays NPA classification for financial sector stability

The Supreme Court, with Hon'ble Mr. Justice Ashok Bhushan, Hon'ble Mr. Justice R. Subhash Reddy, and Hon'ble Mr. Justice M.R. Shah, granted an adjournment requested by the Solicitor General, Mr. Tushar Mehta, postponing the matter to 10.09.2020. Senior Advocate Mr. Harish Salve's submission on non-performing assets (NPA) led to a directive that accounts not previously classified as NPAs until 31.08.2020 should maintain that status temporarily, aiming to offer relief and stability in the financial sector by delaying NPA classification for those accounts.

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Issues:
1. Adjournment of the matter requested by the Solicitor General.
2. Submission by the Senior Advocate regarding non-performing assets (NPA) declaration.

Analysis:
1. The Supreme Court, comprising Hon'ble Mr. Justice Ashok Bhushan, Hon'ble Mr. Justice R. Subhash Reddy, and Hon'ble Mr. Justice M.R. Shah, issued an order on the matter. The Solicitor General, Mr. Tushar Mehta, requested an adjournment, leading to the matter being postponed to 10.09.2020 as per his request.

2. During the proceedings, Mr. Harish Salve, a Senior Advocate, made a submission concerning the declaration of accounts as non-performing assets (NPA). He emphasized that no account should be classified as NPA for a minimum period of two months. Consequently, the court directed that accounts not previously declared as NPAs until 31.08.2020 should maintain that status until further instructions are provided. This decision aims to provide temporary relief and stability in the financial sector by delaying the NPA classification for the specified accounts.

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