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2020 (12) TMI 1236 - HC - Indian LawsExisting loans to NBFCs classified as ‘standard’ - grievance of the writ petitioner is that the petitioner has been saddled with a double whammy inasmuch as NBFCs have been excluded from the purview of an RBI notification dated August 6, 2020, which extend several benefits? - HELD THAT:- It is manifest from the circulars dated August 6, 2020 that the NBFCs have been subjected, prima facie, to a two-pronged offensive, on the one hand curtailing their rights, as lenders, to downgrade assets of borrowers and, on 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.
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