The Supreme Court on Tuesday quashed a Reserve Bank of India circular asking banks to classify a loan account as stressed if there was even a day of default, Live Law reported. The top court declared the circular unconstitutional and ultra vires. A bench of Justices Rohinton Fali Nariman and Vineet Saran pronounced the judgement while hearing a batch of petitions challenging the RBI circular. More than 75 companies are facing insolvency proceedings because of default in payments, The Times of India reported.