Supreme Court to start hearing plea against RBI Feb 12 circular from today

The HLEC had come up with a report suggesting ways to resolve stress in the sector

The Supreme Court will start hearing on the power, sugar, and shipping companies’ challenge to the Reserve Bank of India’s (RBI) February 12 circular from Wednesday. 

With a total exposure of nearly Rs 2 trillion in the power sector alone, companies, hoping for a verdict in their favour, may have to face some disappointment, experts said.

“Value maximisation is the main purpose of the Insolvency and Bankruptcy Code (IBC) and that has been upheld by the Supreme Court time and again via various judgments. If the petitioners limit themselves to this line of argument, there is some hope for them. It is