https://www.taxtmi.com/caselaws?id=377786 Sections 35AA and 35AB of the Banking Regulation Act were upheld as part of a stressed-asset resolution framework, with the Court holding that economic legislation enjoys wide constitutional latitude and that adequate guidance existed in the statutory scheme, object and connected provisions. The Court also clarified that Section 35AA is the exclusive source of power for directions to initiate insolvency resolution under the Insolvency and Bankruptcy Code, and that such power operates only with Central Government authorisation and for a specific default. A general, class-wide RBI circular could not be sustained under that provision, and Section 45L did not save it. The circular was therefore ultra vires and without legal effect. en-us Tue, 02 Apr 2019 00:00:00 +0530 Wed, 16 Jul 2025 14:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=377786 Sections 35AA and 35AB of the Banking Regulation Act were upheld as part of a stressed-asset resolution framework, with the Court holding that economic legislation enjoys wide constitutional latitude and that adequate guidance existed in the statutory scheme, object and connected provisions. The Court also clarified that Section 35AA is the exclusive source of power for directions to initiate insolvency resolution under the Insolvency and Bankruptcy Code, and that such power operates only with Central Government authorisation and for a specific default. A general, class-wide RBI circular could not be sustained under that provision, and Section 45L did not save it. The circular was therefore ultra vires and without legal effect. Case-Laws Indian Laws Tue, 02 Apr 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=377786