Case Law Details
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 advances extended by the banks.
In view of the above, High Court decided that till the next date of hearing banks are restrained from taking any coercive action against the petitioner, including declassification of the petitioner, for the default committed by the petitioner in the Reverse Factoring Facility availed by the petitioner from such respondents, subject to the condition that the petitioner shall abide by all such conditions as may be stipulated by this Court by its further orders. The said respondents shall, however, be free to consider the representation of the petitioner for further extension of the facility, remaining uninfluenced by any observation of this Court in the present order.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
CM Nos.10398-99/2020 (Exemption)
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