Icici Bank Limited vs Officl.Liquir.Of Aps Star Indus.Ld.& ...

The Supreme Court addressed whether the inter se transfer of Non Performing Assets (NPA) by banks is permissible under the Banking Regulation Act, 1949. The Court held that such assignments are legal, overturning the Gujarat High Court's ruling that deemed them illegal and invalidated contracts of assignment. The Court clarified that assignee banks are entitled to substitution in liquidation proceedings, affirming the validity of the Deed of Assignment executed between Kotak Mahindra Bank Ltd. and ICICI Bank Ltd.