SC's order on RBI circular: Banks retain right to initiate IBC proceedings

The compulsion of RBI circular does not apply till November

Legal experts share implications of the recent Supreme Court stay on the RBI's February circular regarding insolvency and bankruptcy proceedings.

The Supreme Court order must be interpreted in the correct legal perspective while appreciating its commercial impact. The SC has not stayed the RBI circular but ordered a status quo till the next date of hearing, scheduled on November 14. 

Second, the status quo only applies to the associations/entities that were parties to the SC proceeding (ie Prayagraj Power Generation Co, Independent Power Producers Association of India, Association of Power Producers, South Indian Sugar Mills Association, All India Bank Officers