New Delhi: The Supreme Court halted insolvency proceedings against defaulters in the power, sugar, shipping and textile sectors, providing relief to borrowers hours before the deadline for referring them to insolvency court expired by staying a Reserve Bank of India (RBI) circular issued in February.
Bankers said the decision will delay the process at least until November 14, when the next hearing is scheduled. They welcomed the intervention of the top judicial authority as it would help give final shape to questions of law and bring together multiple suits in courts across the country, which were complicating the process.
The order is expected to lead to borrowers that have so far not sought judicial relief against the controversial R…
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