(LiveMint)
The Supreme Court did not agree to a plea for staying the hearing, scheduled for this Thursday, in the Allahabad High Court (HC) on the Reserve Bank of India’s (RBI’s) bankruptcy proceedings on stressed power sector assets. Saying the hearing had progressed to a mature level, the two-judge SC bench headed by Justice Rohinton F Nariman turned down the request, from the RBI, to halt the HC process.
The RBI in a circular dated February 12 had mandated banks to classify even one day’s delay in debt servicing as default. Resolution proceedings on stressed accounts were to be completed in 180 days.
On a petition against this by the Independent Power Producers Association of India, the HC had directed the Union finance ministry to meet stakeholders in the sector and work on a possible solution within a month. The ministry did so, along with officials of the ministries of coal and power, and an RBI representative, on June 21.
