https://www.taxtmi.com/caselaws?id=458528 A banking company cannot treat the purchase and sale of non-performing assets with underlying security as a permissible form of banking business under the Banking Regulation Act, 1949. Section 5(b) confines banking business to accepting deposits for lending or investment, while Section 6 provisions do not authorise trading in debts; Section 6(2) read with Section 8 was read as barring business outside the enumerated forms. The Court also held that general transfer law cannot override this special statutory scheme, and an assignment structured as a basket transaction was impermissible. Because the transfer was unlawful, the assignee bank could not be substituted for the assignor in winding-up proceedings. en-us Mon, 12 Jan 2009 00:00:00 +0530 Tue, 05 Nov 2024 12:45:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=458528 A banking company cannot treat the purchase and sale of non-performing assets with underlying security as a permissible form of banking business under the Banking Regulation Act, 1949. Section 5(b) confines banking business to accepting deposits for lending or investment, while Section 6 provisions do not authorise trading in debts; Section 6(2) read with Section 8 was read as barring business outside the enumerated forms. The Court also held that general transfer law cannot override this special statutory scheme, and an assignment structured as a basket transaction was impermissible. Because the transfer was unlawful, the assignee bank could not be substituted for the assignor in winding-up proceedings. Case-Laws Indian Laws Mon, 12 Jan 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=458528