The Economic Times

HC says won't consider non-encashment of Reliance Communications' bank guarantees as default

The Delhi High Court will not consider non-encashment of RCom bank guarantees as a default. This ruling applies until the next hearing scheduled for September 3. Banks and RCom entities challenged the Department of Telecommunications' move to invoke guarantees. The court will adjudicate the legality of the department's actions and the banks' opposition. The government claims an independent right to proceed against petitioners and banks.