The Supreme Court’s (SC) judgement quashing RBI’s 12th February circular has come as a bolt from the blue. The circular was aimed at early recognition and resolution of stressed assets and making the Insolvency and Bankruptcy Code, 2016 (IBC) pivotal in the entire framework.

Post the February 12 circular, all pre-existing categorization of standard stressed assets –SDR, S4A, CDR restructuring stood abolished, leaving IBC as the only resolution mechanism.

Sakshi Batra does a 3 point analysis to understand the impact of the SC judgement.