The issue under consideration is whether the interest will be charged on loan during moratorium period which is declared by RBI due to COVID-19?
As per RBI’s circular dated 27th March, 2020 the RBI has extended the moratorium period from June 01 to 31st August, 2020 on all term loans due to COVID – 19.
In the instant case, the petitioner has filed the petition mainly for seeking relaxation from payment of interest at the time of repayment of loan.
Supreme Court has state that, certain directions regarding waiver of interest or allowing any relaxation regarding payment of interest should be declared by Government of India or RBI. Hence they have not interfere between their rights but at the same time they have granted a protection to the petitioner to the extent of not being declared as NPA’s till any further orders passed with this respect.
FULL TEXT OF THE SUPREME COURT JUDGEMENT
At the request of the Mr. Tushar Mehta, learned Solicitor General, the matter is adjourned for 10.09.2020.
Mr. Harish Salve, learned Senior Advocate, submitted that no account shall become NPA atleast for a period of two months.
In view of the above, the accounts which were not declared NPA till 31.08.2020 shall not be declared NPA till further orders.