Mumbai, April 5 -- The Supreme Court on Tuesday, 2 April, quashed a central bank circular that had set strict norms for the resolution of bad loans, easing the concerns of some debt-laden companies and upending India's fledgling bankruptcy resolution process. A two judge-bench comprising justices Rohinton F. Nariman and Vineet Saran said the Reserve Bank of India (RBI) acted beyond its powers in issuing the 12 February 2018 circular. "We have declared the RBI circular ultra vires," Nariman said. The RBI circular directed banks to refer defaulters to bankruptcy courts if they were unable to find a resolution plan within 180 days for stressed accounts where the outstanding amount was more than '2,000 crore. Tuesday's judgement said the Bankin...