1. You Are At:
  2. English News
  3. India News
  4. SC quashes RBI circular on insolvency issued last year

SC quashes RBI circular on insolvency issued last year

However, during the pendency of the matter, the apex court on September 11 last year asked banks to maintain status quo and not to initiate insolvency proceedings against loan defaulting companies.

PTI PTI
New Delhi Published on: April 02, 2019 14:53 IST
Image
Image Source : FILE

Image

The Supreme Court on Tuesday quashed the RBI circular of last year that pertains to the provisions for declaring a company bankrupt even on a one-day overdue.

The bench headed by Justice R F Nariman said: "We have declared the RBI circular ultra vires."

Reserve Bank of India's (RBI) had on February 12, 2018 issued a circular saying that lenders have to provide for resolution plan within 180 days in case of large account of Rs 2,000 crore and above.

It said that if a resolution was not found by August 27, Non Performing Asset (NPA) accounts should be sent to bankruptcy courts.

However, during the pendency of the matter, the apex court on September 11 last year asked banks to maintain status quo and not to initiate insolvency proceedings against loan defaulting companies.

Get the latest Lok Sabha election 2019 news on https://indiatvnews.com/elections.. Follow Live Election Results on May 23 with India TV Chairman and Editor-in-Chief Rajat Sharma using #ResultsWithRajatSharma and #ElectionsWithIndiaTV. You can also watch India TV's Live TV.

India TV Election Day Counting
modi-on-india-tv