STRESSED ASSETS STABILIZATION FUND vs WEST BENGAL SMALL IND. DEVELOPMENT CORPORATION LTD. AND ANR.

The Supreme Court upheld the Calcutta High Court's decision allowing the application under Section 535 of the Companies Act, 1956, which permitted the transfer of stressed assets to the Stressed Assets Stabilization Fund (SASF). The court emphasized the role of SASF as a special purpose vehicle for managing and recovering stressed assets, affirming that the transfer of loans and securities was valid and in accordance with the law. The judgment reinforces the legal framework for asset management in insolvency situations.