Bengaluru, May 6 -- The High Court of Karnataka has ruled that benefits of loan restructuring or revival schemes for non-performing assets (NPAs) are legally available only to functioning micro, small and medium enterprises (MSMEs).

This determination came as Justice M. Nagaprasanna rejected a petition from M/s Metro Steel Section challenging recovery proceedings initiated by the State Bank of India for approximately Rs 18.5 crore in outstanding loans.

The petitioner-firm had argued that the bank should have considered loan rectification and restructuring options as provided in the Reserve Bank of India's (RBI) 2015 notification under Section 19 of the MSME Development Act, 2006, before pursuing recovery under the Securitisation and Rec...