New Delhi: The Allahabad High Court has asked the finance ministry to submit the government's stand on the controversial RBI circular in two weeks. The matter has been fixed for hearing on August 2, sources said.

Additional Solicitor General of India, who appeared for the central government, informed the court that as per the email instructions received by him, a report has been sent by ministry of finance to ministry of power and final report/ stand of the the government is still under deliberation. He requested the court for 15 days time for filing of report, the sources said.

Senior Counsel S Powaiyya who was appearing for the power companies sought interim relief in the court while the RBI counsel opposed it stating that under the circular the coercive actions will begun only after lapse of 180 days. 

During course of arguments, the bench observed that it has already kept the option of aggrieved party open to approach the court with application in case of any coercive action.

The court had earlier clubbed three separate petitions filed by the Association of Power Producers (APP), Independent Power Producers Association of India (IPPAI) and Jaypee Associates against the RBI circular, he said. 

The high court had on May 31 temporarily stayed the RBI circular on companies other than willful defaulters and asked finance secretary to hold a meeting on resolutions. 

The power ministry and the private power firms have demanded that stressed power projects should not be categorised as stressed in 90 days, while the deadline of 180 days to resolve a bad loan, after which liquidation process is immediately triggered, be extended to 270 days.