Govt in damage control mode after SC verdict, Sec 35 may be invoked

Section 35AA empowers the central government to authorise the RBI "for issuing directions to banking companies to initiate insolvency resolution process"

Bruised by the Supreme Court’s verdict on the Reserve Bank of India’s (RBI’s) February 12, 2018, circular on resolving bad debt, the government is planning to authorise the central bank to refer companies to the Insolvency and Bankruptcy Code (IBC) on a case-by-case basis.
 
“We will not let the IBC process weaken. The Supreme Court verdict does not curtail the government’s powers to give directions to the RBI to initiate recovery proceedings. The government will invoke Section 35AA of the Banking Regulation Act to soften the Supreme Court verdict on the February 12 circular,” said a senior finance ministry