The Confederation of All India Traders (CAIT) on Tuesday said they appreciated the Supreme Court’s move to quash the RBI circular dated February 12 said that it is necessary to monitor large debts given by banks.
In a statement, Praveen Khandelwal, Secretary General, CAIT, said: “Even in trading activity, the owners keep a close watch on big debtors. When hundreds of small debtors may fail, it may not affect the company, but one big debtor can shake the foundation of the company. There has to be some mechanism to ensure that big companies pay to their creditors as well as the bankers.”
“We cannot let them go scot free. We do appreciate the sentiments of the Honourable Supreme Court,” he added.
Stating that CAIT will need to study the details of the judgment, he added that while monitoring of big debts by banks is important, monitoring of big companies towards repayment of the creditors is equally important.