Case Law Analysis
|National Company Law Appellate Tribunal
Section 242 Companies Act | Fraudulent Transactions Can Be Unwound Without Consent: NCLAT Upholds RBI Directions as Binding
NCLAT ruled that fraudulent transactions under Section 242 of the Companies Act can be set aside without the consent of involved parties, reinforcing RBI directions as legally binding. The judgment impacts insolvency proceedings and corporate governance, particularly for NBFCs and group companies engaged in sham lending arrangements.