Swiss Challenge Auction Upheld Despite Pending NCLAT Appeal

The Madras High Court upheld the validity of a bank's decision to transfer stressed loan exposure through the Swiss Challenge Method despite the pendency of insolvency proceedings before the NCLAT. 

The Court held that rejection of a One-Time Settlement (OTS) proposal and adoption of the Swiss Challenge Method are matters of commercial wisdom, warranting limited judicial interference in the absence of arbitrariness or illegality.