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New Delhi: The Supreme Court 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 Indias (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…
Read the full article at: https://theprint.in/india/governance/supreme-court-quashes-rbi-circular-on-company-insolvency/215816/