https://www.taxtmi.com/caselaws?id=113216 Inter se transfer of non-performing assets between banks is treated as a permissible incident of banking business under the Banking Regulation Act, 1949, because the Act allows banking companies to deal with property, rights and interests connected with securities and does not impose a general bar on assignment of debts. RBI directions permitting purchase and sale of NPAs reinforce that framework, so assignment deeds are not illegal on that basis. An assignee bank that acquires the receivables and secured creditor's rights may step into the assignor's shoes in recovery proceedings, including matters concerning companies in liquidation, because the borrower's underlying liability is not novated by the transfer. en-us Thu, 30 Sep 2010 00:00:00 +0530 Fri, 19 Dec 2025 16:26:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=113216 Inter se transfer of non-performing assets between banks is treated as a permissible incident of banking business under the Banking Regulation Act, 1949, because the Act allows banking companies to deal with property, rights and interests connected with securities and does not impose a general bar on assignment of debts. RBI directions permitting purchase and sale of NPAs reinforce that framework, so assignment deeds are not illegal on that basis. An assignee bank that acquires the receivables and secured creditor's rights may step into the assignor's shoes in recovery proceedings, including matters concerning companies in liquidation, because the borrower's underlying liability is not novated by the transfer. Case-Laws Companies Law Thu, 30 Sep 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=113216