Covid-19: HC restrains bank from taking coercive action for default in factoring facility

Eastman Auto & Power Limited Vs RBI & Ors. (Delhi High Court) The object of issuing notifications/circulars dated 27.03.2020 and 17.04.2020 was to provide financial relief in repayment due to COVID-19 to the parties who have availed the term loans and working capital facilities but this relief is not extended towards factoring facilities. Hence the learned counsel for the petitioner has also drawn high courts attention to Clause 5 and 8 of the Annexure to the Circular dated 30.07.2015, which prima facie shows that such Factoring facility was to be considered at par with loans and advan...