NCLAT: Auction Purchaser Cannot Reclassify NPA

The NCLAT ruled that an auction purchaser cannot seek reclassification of a loan account from NPA to a standard account if such reclassification harms the rights of financial creditors, including those of personal guarantors. The tribunal held that acquiring assets in liquidation does not grant authority to alter creditor–debtor relationships or undermine statutory creditor protections. The judgment reinforces the boundaries of purchaser rights under IBC and protects the integrity of lender recoveries during liquidation processes.