Loan Moratorium Case: Who Said What In SC Today?

A three-judge bench of the Supreme Court on Friday heard petitions seeking interest waiver during the loan moratorium period. The Case has been adjourned till December 02, 2020. Banks can follow normal rules of business.

A three-judge bench of the Supreme Court on Friday heard petitions seeking interest waiver during the loan moratorium period. The bench comprising of Justices Ashok Bhushan, R Subhash Reddy and MR Shah will resume hearing the matter on December 2, when it will most likely conclude the hearing. Here are the key highlights of what happened in the apex court today. Supreme Court:

• Case adjourned till December 02, 2020, Banks can follow normal rules of business.

IBA counsel Harish Salve:

• People are drawing money from defunct accounts.
• SC must consider withdrawing the order restraining banks from classifying accounts as NPAs.
• If not NPA, at least allow banks to stop overdraft facilities.

CREDAI Counsel Kapil Sibbal:

• Today Centre and RBI, as well as bankers the association has said everything needs to be worked out in accordance with the contract.
• This means disaster or no disaster contractual provisions will prevail.
• As of 1st September, 98% of the industry will become NPA.
• These are government figures. If you don't protect us we will not be entitled to any relief.

Individual Petitioner:

• Credit score of people has been affected during the crisis and will affect future prospects.
• There is a lot of harassment from banks for recovery.
• A further relief is required in the form of an interest waiver.

Solicitor General Tushar Mehta to SC:

• If you go sector-wise it would be beneficial.
• There is a mechanism in place let the petitioners work out according to the mechanism.
• This is in the background of the current situation keeping in mind the future contingency.
• It is now up to each individual to figure of their restructuring plans.
• As per the economic state, various factors come into play for the government to decide on the fiscal issues.

(Inputs from Bar & Bench)