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2023 Supreme(Kar) 90
IN THE HIGH COURT OF KARNATAKA
Krishna S.Dixit, J.
M/s International Asset Reconstruction Company Private Limited - Appellant
Versus
Official Liquidator M/s Cauvery Papers Limited (in Liquidation) Corporate Bhavan, 26-27, Raheja Towers, 12th Floor, M G Road, Bangalore-560001 - Respondent
Company Application 394 of 2022, Company Petition 67 of 1997
Decided On : 12-01-2023
Keshav M. Datar, Advocate, K S Mahadevan, Advocate
In absence of contrary law, an assignee stands in the shoes of the assignor.
Headnote:ASSIGNMENT - Substitution of Name in Debt Assignment - Not specified The court referenced the settled position of law that in the absence of any contrary provision, an assignee stands in the shoes of the assignor. This likely refers to principles under contract law and assignment, where the rights and obligations under a contract can be transferred to another party. The court's decision to allow the application for substitution is based on this legal principle.
Fact of the Case:
The Applicant sought substitution of its name for that of Standard Chartered Bank, which had assigned a debt to the Applicant.Finding of the Court:
The court allowed the application for substitution and granted leave for it.Issues:
Substitution of name in debt assignment.Ratio Decidendi:
In absence of contrary law, an assignee stands in the shoes of the assignor.Final Decision:
Application for substitution allowed.JUDGMENT
Krishna S.Dixit, J. - This Applicant seeks substitution of its name for that of the Standard Chartered Bank which has assigned the debt to the Applicant herein. It has been a settled position of law since more than a century that where there is an Assignment, in the absence of law to the contrary, the Assignee stands into the shoes of the Assignor.
2. In view of the above, the Application in CA No.394/2022 is allowed and leave for substitution is granted.
