https://www.taxtmi.com/caselaws?id=767305 A compromise recorded by the HC could not stand because it effectively assigned a borrower's NPA loan, securities and mortgage rights to a private entity that was not a permitted transferee under the RBI (Transfer of Loan Exposure) Directions, 2021. The arrangement was therefore inconsistent with the binding regulatory framework and also prejudiced a non-signatory whose assets could be proceeded against on the basis of the assigned loan. Objections based on delay were rejected because an unlawful compromise could still be recalled, and the challenge was not defeated by locus objections to the Liquidator where the order itself was otherwise unsustainable. The order recording the compromise was liable to be recalled. en-us Tue, 11 Mar 2025 00:00:00 +0530 Sat, 15 Mar 2025 08:41:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=767305 A compromise recorded by the HC could not stand because it effectively assigned a borrower's NPA loan, securities and mortgage rights to a private entity that was not a permitted transferee under the RBI (Transfer of Loan Exposure) Directions, 2021. The arrangement was therefore inconsistent with the binding regulatory framework and also prejudiced a non-signatory whose assets could be proceeded against on the basis of the assigned loan. Objections based on delay were rejected because an unlawful compromise could still be recalled, and the challenge was not defeated by locus objections to the Liquidator where the order itself was otherwise unsustainable. The order recording the compromise was liable to be recalled. Case-Laws Companies Law Tue, 11 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=767305