After the Supreme Court quashed an RBI circular on the provisions for declaring a company bankrupt even on a one-day overdue, Finance Minister Arun Jaitley Tuesday expressed confidence that the central bank will take a call in line with the present conditions of the market.
“We are trying to get the judgement…We will read it and I am sure the RBI will also now decide in the present condition of the market what is to be done with the various aspects contained in that circular,” he told reporters when asked to react to the order.
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.”
The Reserve Bank of India (RBI) had on February 12, 2018 issued the 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.