Two power producers move Madras HC to block lenders from approaching NCLT

RBI's deadline for resolution of NPAs as per a circular on February 12, is coming to an end on Tuesday, after which banks would start moving to NCLT for recovery

With lenders likely to move the National Company Law Tribunal (NCLT) against stressed power assets in the country after September 11, as per a circular issued by the Reserve Bank of India (RBI), two power producers in Tamil Nadu have approached the Madras High Court seeking interim injunction restraining the banks from doing so.

Petitions by IL&FS Tamil Nadu Power Company Ltd against RBI and others, and RKM Powergen Pvt Ltd against Power Finance Corporation Ltd and others, came up for hearing on Monday before Justice R Mahadevan. RBI's deadline for the resolution of the non-performing assets as per a circular