SC allows Centre one more week to submit loan moratorium plan; hearing deferred to Oct 5

The Centre on Monday informed the Supreme Court that a decision on the issue of waiver of interest on deferred EMIs during the moratorium is at an advanced stage and likely to be taken within two or three days.

A three-judge bench headed by Justice Ashok Bhushan noted that Solicitor General Tushar Mehta has informed the court that the issues are under active consideration by the government, and it is likely that a decision may be taken within two or three days.

Mehta, appearing for the Union of India, submitted before the top court that he will endeavour to circulate affidavit among the parties by Thursday and the matter can be heard on October 5.

Senior lawyer Rajiv Dutta, appearing for one of the petitioners, submitted that the case should be heard and listed as early as possible.

The bench took on record the submissions and fixed the matter for further hearing to October 5. Advocate Vishal Tiwari, a petitioner in the matter, submitted that individual borrowers are facing trouble and a lot of hardships from the lending institutions as they are making threatening calls to them.

A fair practice code issued by the Reserve Bank of India (RBI) shall be strictly followed by them, Tiwari said. The bench said that it will consider and hear all the submissions on the next date of hearing.

The Solicitor General was also directed to serve a copy of his affidavit upon all appearing parties in the matter.

The top court was hearing two petitions, filed by one Gajendra Sharma and lawyer Vishal Tiwari, seeking an extension of the moratorium period on repayment of loans and to waive off the interest on the repayment of the loan amount in view the COVID-19 pandemic.

On September 10, the top court had extended its interim order that no account is to be declared a non-performing asset (NPA) or bad loan till further orders after the Centre said an expert panel has been set up to look into the issue of interest being charged by banks on instalments deferred during the moratorium period due to COVID-19 pandemic.

The Centre had sought two weeks' time to file an appropriate affidavit bringing on record the relevant decisions and directions of the government as well as the Reserve Bank of India (RBI).

It had said that everything has to be considered holistically and the government is considering all the sectors, for which an expert panel has been constituted.

(With agency inputs)