Loan moratorium case adjourned till 2nd December in Supreme Court

The Supreme Court on Friday adjourned the hearing on the loan moratorium case till 2nd December and disposed of a petition by an individual borrower Gajendra Sharma, who expressed his satisfaction on the measures taken by the Centre to redress the grievances of the borrowers.

The bench headed by Justice Ashok Bhushan shifted the matter for further hearing to December 2 after Solicitor General Tushar Mehta said, “The court should not interfere in the fiscal policy issues of the government.”

Lawyer Vishal Tiwari who is also among the petitioners 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 unfortunate, so this court should appropriately consider this. When a person who was earning Rs.30,000 to Rs 35,000, he was paying around Rs 10,000 EMI. But when his income has seized, from where he will pay EMI’s?” Tiwari asked.

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

According to Tiwari professionals like lawyers are facing the decline because of the suspension of physical hearings due to the COVID-19 situation. He exclaimed that the lending institutions were using “illegal methods, abusive language” and were not following the fair practice code of the Reserve Bank Of India and all this should put to an end.

The extension of moratorium till March 31, 2021, is a major relief in the present COVID-19 situation he commented, adding that restructuring and resolution plan of government is not effective relief for common borrowers.

Senior lawyer Harish Salve on behalf of Indian Banks Association said that banks are helpless against defaulting borrowers and the court should hear and consider their requests.

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