https://www.taxtmi.com/caselaws?id=377786 The SC held that Sections 35AA and 35AB of the Banking Regulation Act, 1949 are constitutionally valid and not manifestly arbitrary. However, the RBI circular dated 12.02.2018 establishing a revised framework for resolution of stressed assets was declared ultra vires. The court distinguished between Section 35A, which permits general directions to banking companies, and Section 35AA, which requires Central Government authorization for specific insolvency proceedings. The impugned circular exceeded statutory authority by issuing general directions without proper authorization. All actions taken under the circular, including insolvency proceedings initiated solely based on it, were declared non-est 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 The SC held that Sections 35AA and 35AB of the Banking Regulation Act, 1949 are constitutionally valid and not manifestly arbitrary. However, the RBI circular dated 12.02.2018 establishing a revised framework for resolution of stressed assets was declared ultra vires. The court distinguished between Section 35A, which permits general directions to banking companies, and Section 35AA, which requires Central Government authorization for specific insolvency proceedings. The impugned circular exceeded statutory authority by issuing general directions without proper authorization. All actions taken under the circular, including insolvency proceedings initiated solely based on it, were declared non-est and without legal effect. Case-Laws Indian Laws Tue, 02 Apr 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=377786