9911796707
TMI Blog2020 (12) TMI 1236X X X X Extracts X X X X X X X X Extracts X X X X ..... the other, excluding them from the benefits regarding borrowing, in the capacity of borrowers - The petitioner rightly argues that there has been a prima facie manifest arbitrariness, by the exclusion of the NBFCs from the benefits of the impugned circulars in their capacity as borrowers, while imposing fetters on the NBFCs in their role as lenders. The matter will appear in the list for hearing on January 11, 2021. The respondents shall be restrained from taking any coercive action against the NBFCs comprising the petitioners, in terms of the exclusion clause appearing in item 2 of the Annexure to the RBI circulation dated August 6, 2020 till January 31, 2021, or until further orders, whichever is earlier. X X X X Extracts X X X X X X X X Extracts X X X X ..... se of default and implementation of resolution plans. As such, while the NBFCs cannot downgrade their borrower's assets, they themselves are subject to such downgradation as borrowers, having fallen within the exception clause of one of the circulars dated August 6, 2020. By placing reliance on the decision reported at (1986) 2 SCC 679 (Comptroller and Auditor-General of India, Gian Prakash, New Delhi and another Vs. K.S. Jagannathan and another), learned senior counsel for the petitioner argues that the High Courts have power to do what the authorities can, in situations of gross arbitrariness and unequal treatment on the part of the authorities concern. By placing reliance on another judgment, reported at (2017) 9 SCC 1 (Shayara Bano V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th regard to downgradation of assets. As such, a holistic approach ought to be taken, according to the respondents, by taking into account all the benefits provided by the lagislature to the NBFCs while deciding the present matter. Learned counsel for the respondents further submits that the reliefs sought by the petitioner, particularly as reflected in paragraph no.10 and prayer (c) of the writ petition, squarely fall within the lagislative domain and are matters of policy decision, which are generally not interfered with by the court under the writ jurisdiction. Taking into consideration all aspects of the arguments advanced by the contending parties, it is manifest from the circulars dated August 6, 2020 that the NBFCs have been subje ..... X X X X Extracts X X X X X X X X Extracts X X X X
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