Nothing called partial defaulters, IBC must apply equally to all: RBI

The Centre in its submission to the Allahabad High Court in July sought regulatory relief and time extension for close to dozen power projects with debt exposure of around Rs 1 trillion

The Reserve Bank of India (RBI) in its submission to the Allahabad High Court, which is hearing a case filed against the Insolvency and Bankruptcy Code (IBC), said that the resolution of stressed assets through this route was a commercial decision taken by the central bank and creditors and it should not be thrust upon the judiciary.

“Control over company is not a divine right. If the promoters default, the creditor will take over the company and manage it. Thus, the IBC is a creditor-driven legislation,” said the RBI in its submission.

In a circular dated February 12, the central