#RBI Regulations

The Allahabad High Court ruled that a personal altercation unrelated to official duties cannot be classified as misconduct under RBI regulations, thereby upholding the employee’s dismissal. It also ordered the bank to pay pending salary arrears and retiral benefits. This clarifies the scope of disciplinary liability for RBI staff.

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.