ROHINTON FALI NARIMAN, VINEET SARAN
Dharani Sugars And Chemicals Limited – Appellant
Versus
Union of India – Respondent
JUDGMENT :
R.F. Nariman, J.
The present batch of petitions and transferred cases raise questions as to the constitutional validity of Sections 35AA and 35AB of the Banking Regulation Act, 1949 ["Banking Regulation Act"] introduced by way of amendment w.e.f. 04.05.2017. The real bone of contention is a Reserve Bank of India ["RBI"] Circular issued on 12.02.2018, by which the RBI promulgated a revised framework for resolution of stressed assets. The important clauses of the aforesaid circular are set out here-in-below:
"Resolution Framework of Stressed Assets - Revised
1. The Reserve Bank of India has issued various instructions aimed at resolution of stressed assets in the economy, including introduction of certain specific schemes at different points of time. In view of the enactment of the Insolvency and Bankruptcy Code, 2016 (IBC), it has been decided to substitute the existing guidelines with a harmonised and simplified generic framework for resolution of stressed assets. The details of the revised framework are elaborated in the following paragraphs.
1. Revised Framework
A. Early
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