Now Reading: Delhi HC: Non-encashment of RCom guarantees not a default till Sept 3
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Delhi HC: Non-encashment of RCom guarantees not a default till Sept 3
The Delhi High Court on Monday ruled that non-encashment of Reliance Communications' Rs 800 crore bank guarantees by Yes Bank, SBI, Punjab National Bank, and Canara Bank will not be treated as…
The Delhi High Court on Monday ruled that non-encashment of Reliance Communications' Rs 800 crore bank guarantees by Yes Bank, SBI, Punjab National Bank, and Canara Bank will not be treated as a default until September 3. Justice Mini Pushkarna issued the direction while hearing petitions from the banks and RCom entities challenging the Department of Telecommunications' move to invoke the guarantees.
RCom, under insolvency proceedings, argued the DoT misinterpreted a Supreme Court judgment of February 13. The lenders called the department's action illegal and ultra vires. The government countered that it had an independent right to proceed against the petitioners since it was not recognised as an operational creditor of RCom.
Indian Opinion Analysis
The coverage from both outlets is effectively identical wire copy, attributed to ET Bureau or ET Telecom. Neither version adds independent framing, commentary, or sourcing beyond the court proceeding itself. Both lead with the same order and quote the same arguments from lenders, RCom's resolution professional, and the government verbatim. There is no pro-government or critical slant to differentiate. Since the court has merely deferred the question, the significance lies in what comes next: on September 3, the High Court will decide whether the DoT can invoke bank guarantees in an insolvency scenario, testing the boundary between telecom licence conditions and the Insolvency and Bankruptcy Code.
Coverage: 2 sources, 2 neutral
Sources (2): economictimes.indiatimes.com (neutral report), telecom.economictimes.indiatimes.com (neutral report)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
