On May 19, 2025, the Karnataka High Court dismissed the writ appeal filed by Gstaad Hotels Pvt. Ltd., rejecting claims of ignorance about the loan assignment to Omkara ARC. The Court held that mere intimation, not prior consent, is sufficient under RBI norms for such assignments. It noted that Gstaad's prolonged silence indicated tacit acceptance. Referring to updated Master Circulars and commercial jurisprudence, the Court emphasized that such disputes fall under specialized forums like the NCLT. The appeal was dismissed, reaffirming the limited scope of writ jurisdiction in commercial banking matters.
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