Allahabad HC grants temporary relief to Power Sector firms from actions pursuant to RBI Circular

Varun Marwah June 1 2018

The Allahabad High Court has today issued a temporary injunction against a circular issued by the RBI which gave borrowers 180 days’ time to clear their dues. It also said that failure to do so would make them liable insolvency proceedings under the IBC. The injunction has been granted to firms belonging to the Power Sector.

The Independent Power Producers Association Of India has challenged the vires of the said circular which was issued on February 12, 2018 (Circular), as being violative of Articles 14 . . .

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