Published On: Fri, Nov 27th, 2020

Supreme Court adjourns to Dec 2 hearing on plea seeking loan moratorium extension

New Delhi [India], November 27 (ANI): The Supreme Court on Friday adjourned to December 2 hearing on pleas seeking extension of the loan moratorium period and waiver of interest on term loans in view of the COVID-19 pandemic.

The Supreme Court Friday directed the government to ensure that all steps be taken to implement its decision to forego interest on eight specified categories of loans paid upto Rs two crore in view of the coronavirus pandemic.

A bench of the apex court, headed by Justice Ashok Bhushan, fixed the matter for further hearing to December 2 after Solicitor General Tushar Mehta said that the court should not intervene in the fiscal policy issues of the government.

Lawyer and one of the petitioners in the matter, Vishal Tiwari, said that he had filed an application for extension of moratorium till March 31, 2020, because there is a slump in work and also for directions so that banks and NBFCs do not harass people.

“Around 12.2 crore people have lost their jobs, it is sad and very very unfortunate, so this court should appropriately consider this. When a person who was earning Rs 30,000 – Rs 35,000, he was paying around, as 10,000 EMI. But when his income has seized, from where he will pay EMIs?” Tiwari asked.

“The other thing is that the restructuring scheme is of no use for those who have lost their entire source of earning during COVID-19. Restructuring is a mammoth task and it cannot be completed till December 31,” he added.

Tiwari said that the professionals like lawyers are facing a slump because physical hearings are suspended in various High Courts due to the second wave of COVID-19.

He said the lending institutions were using “illegal methods, abusive language” and not following the fair practice code of the Reserve Bank of India and all this should be stopped.

The only relief under the present situation of COVID-19 is the extension of the moratorium till March 31, 2021, he said, adding that restructuring and resolution plan of government is not effective relief for common and individual borrowers.

Senior lawyer Harish Salve, appearing for Indian Banks Association, said that banks are rendered helpless against defaulting borrowers and the court should hear and consider their prayers.

The top court was hearing petitions, including one filed by one Gajendra Sharma and another by lawyer Vishal Tiwari seeking the waiver of interest on interest on term loans and extension of the moratorium period in view of the COVID-19 pandemic and its economic impact.

Disclaimer :- This story has not been edited by The Sen Times staff and is auto-generated from news agency feeds. Source: ANI

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