Allahabad HC Grants Temporary Relief For Power Projects From RBI Circular On Revised Framework For Resolution Of Stressed Assets [Read Order]

In a respite to power projects under severe financial stress and facing the threat of being pushed into insolvency proceedings, the Allahabad High Court on Thursday temporarily stayed the circular issued by the Reserve Bank of India which gives borrowers 180 days’ time to clear their dues.The Bench comprising Chief Justice D.B. In a respite to power projects under severe financial stress and facing the threat of being pushed into insolvency proceedings, the Allahabad High Court on Thursday temporarily stayed the circular issued by the Reserve Bank of India which gives borrowers 180 days’ time to clear their dues. The Court further directed the Ministry of Finance to hold a meeting in June, 2018 with the Secretaries from RBI, Ministry of Power, Ministry of Petroleum and Gas, and Ministry of Coal, along with a representative of the Petitioner Association, to consider their grievance and see whether any solution to the problem is possible, in the light of observations made by the 37th report of the Standing Committee on Energy presented to the Lok Sabha on 7 March. The Court was hearing a Petition filed by the Independent Power Producers Association of India, challenging the RBI circular issued on 12 February this year as being violative of Articles 14 and 19 of the Constitution of India.