India, Nov. 5 -- The Supreme Court (SC) on Tuesday asked what prejudice would be caused to banks if they provide an opportunity of hearing to borrowers before classifying their account as fraud. A bench of justices JB Pardiwala and KV Viswanathan observed that at least an opportunity be given to a person whose account is to be declared as fraud.

The bench's observations came while hearing a petition filed by State Bank of India (SBI) challenging an order of the Calcutta High Court in a matter relating to declaration of an account as fraud.

Solicitor General Tushar Mehta, appearing for SBI, referred to a March 2023 verdict of the Supreme Court and said the decision should not be read or understood to convey in so many words that oral hea...