The Supreme Court on Wednesday adjourned to December 14 the hearing on pleas seeking an extension of the loan moratorium period and waiver of interest on interest on term loans in view of the COVID-19 pandemic. A three-judge bench of the top court, headed by Justice Ashok Bhushan, fixed the matter for further hearing to December 14.
Advocate V Giri, appearing for the Reserve Bank of India (RBI), said the task of restructuring of loans can be completed by December 31. The bench then asked Mr Giri to bring some clarifications on the restructuring prescribed time till December 31.
Lawyer and one of the petitioners in the case, Vishal Tiwari, said that the submissions of the respondents did not cover his prayers and arguments. Mr Tiwari said recently there is news that IBA has requested the RBI to extend the restructuring time period till March 31, 2021.
Mr Tiwari said a resolution plan cannot be completed till December 31. The top court told him that they will hear him after the completion of the respondent. “Matter is adjourned for 14th December,” the bench of the top court said.
Solicitor General Tushar Mehta, appearing for the Centre, has completed his arguments in the case and submitted that all kinds of steps and measures have been taken by the Union of India (UOI) to minimise the difficulties and hardships the people had or may be facing due to the COVID-19 pandemic crisis, especially the financial one.
Earlier, the top court had directed that the bank accounts of persons, as on August 31, should not be declared as non-performing assets until the disposal of the pleas seeking an extension of the moratorium period.
The top court was hearing two pleas filed by Gajender Sharma and lawyer Tiwari, seeking directions to extend the moratorium period to help borrowers in deferring their EMI payment on term loans and for waiver of interest on the loan repayment during the moratorium.