Judicious decision

Allahabad High Court has sent the right signal

The Allahabad High Court has taken the right decision by denying interim relief to power companies from the Reserve Bank of India’s (RBI’s) February 12 circular, which set a 180-day deadline for the resolution of all non-performing assets. The RBI circular requires banks to finalise a resolution plan in case of a default on large accounts of Rs 20 billion or more within the deadline, failing which insolvency proceedings will have to be invoked against the defaulter and assets would be taken to the National Company Law Tribunal (NCLT). As many as 34 power plants, with a combined capacity of