ICICI BANK LIMITED vs OFFICL.LIQUIR.OF APS STAR INDUS.LD.

The Supreme Court addressed the legality of inter se transfer of Non Performing Assets (NPA) by banks under the Banking Regulation Act, 1949. The Court held that such transfers are permissible, thereby overruling the Gujarat High Court's judgment which deemed these assignments illegal and denied assignee banks the right to substitute the original lender in liquidation proceedings. The Court clarified that the assignment of debts does not violate the provisions of the BR Act, 1949, and affirmed the validity of the Deed of Assignment executed between Kotak Mahindra Bank Ltd. and ICICI Bank Ltd.