Covid-19: The Supreme Court can say no in the case of the moratorium

The Supreme Court on Monday indicates not to provide any help that petition. The action was taken for an interest-free loan moratorium for six months or until the Covid-19 situation subsides.

The bench consisting of Justice Bhushan and M R Shah made this observation while talking among themselves. This action was taken as the petitioner's lawyer Vishal Tiwari was not connected with the video conference.

The trial was postponed to June 11 because Tiwari was not in line to debate his case. The moratorium for considering the loss of business opportunities and unemployment due to the second wave of Covid-19.

Speaking among themselves, Judge Bhushan asked his colleague judge, said, "Have you ever seen a prayer, brother?"

Justice Shah said, "Yes. We cannot grant it. Representation can be allowed to be made to RBI."

Attorneys in Madras High Court: Covid-19: The Supreme Court can say no in the case of the moratorium

The petition said the center and its ministries concerned as well as the Reserve Bank of India (RBI) have failed to help in this situation. They failed for sectors and individuals whose sustenance and existence are under the clouds.

 

"There is no such help and monetary package that has been stated by sovereignty. They were not discussed the time that is emphasized. People are under extraordinary pressure to pay EMI's. They are always under the threat of accounts may be declared as an NPA," said the petition.

Furthermore, it argues that without salary, it turns out it becomes a hopeless situation for individuals. "RBI at 6-5-2021 has issued a circular for a resolution plan 2.0. In which cannot be said to be adequate help for all in the current situation to be arbitrary, unfair and eyewash," petition adds

The RBI circular stated, introducing a resolution plan for stressed micro, small and medium enterprises  (MSMEs). The circular described for the borrowers during the second wave of Covid-19. 

Property of every citizen or company

Showing the RBI circular on August 6, last year provided loan restructuring facilities during the first wave of Covid-19.  The petition prayed for the same help. And requested immediate action in the current situation.

Prayer is to direct that no bank or financial institution must act. They must act against the property of every citizen or company for a period of six months. They must not act against non-loan payments and no account stated as a non-performing asset (NPA) for six months.

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