Has SC thrown a wrench in RBI's circular on resolution of bad loans?

The Allahabad high court has also asked the government to examine the possibility of advising the central bank under Section 7 of the RBI Act against initiation of bankruptcy proceedings

The Supreme Court has effectively stayed the implementation of RBI’s February 12 circular till its next hearing in the matter on November 14, providing relief to borrowers from power, sugar and textile sectors who were staring at the prospect of being dragged to India’s bankruptcy courts.

The relief came on Tuesday, the last day of the 15-day window given by the RBI to lenders for appointing legal counsel to file insolvency cases. The central bank’s circular in February directed lenders to file insolvency proceedings against all corporate borrowers above Rs 2,000 crore if a resolution plan could not be worked out