Thread by @barandbench

RBI CIRCULAR ON MORATORIUM ON LOAN REPAYMENT:

A three Judge Bench of the Supreme Court to resume hearing petitions concerning moratorium on loan repayment and interest levied on interest.

#SupremeCourt #LoanMoratorium @RBI

During the last hearing #SupremeCourt had asked the Centre why credit-card users should be entitled to the benefit of compound interest waiver under Reserve Bank of India's (RBI) loan moratorium scheme since they are not availing loans but only using the card to purchase goods.

SG Tushar Mehta: Its now upto each individuals to figure of their restructuring plans.

Senior Adv Harish Salve appears for Indian Banks association: basic difference we wanted to explain is govt package covers all small depositors. Your lordship may see the affidavits we filed

Salve: On October 9 we filed an affidavit. It is titled Gajendra Sharma vs UOI, additional affidavit was filed by Indian banks association

SC: Let us hear one after another

Senior Adv V Giri: @RBI has not been heard yet

Solicitor-General: If you go sector wise it would be beneficial. There is a mechanism in place let the petitioners work out in according to the mechanism. This is in background of the current situation keeping in mind the future contingency.

SG: Asking something to be tailor made for a certain sector may not be feasible

Justice Bhushan: let us hear the petitioners.

Senior Adv Kapil Sibal appears for CREDAI: today Centre and RBI as well as bankers association has said everything needs to be worked out in accordance of the contract. This means disaster or no disaster contractual provisions will prevail. @KapilSibal

Sibal: As of 1st Sept, 98 percent of the industry will become NPA. These are govt figures. If you don't protect us we will not be entitled to any relief.

Justice Shah: You need to include that in your prayer

An intervenor submits that loan moratorium be extended upto December 31, 2020, and that common people should not be harassed by phone calls or abusive language to make payments.

"12.2 crore people have lost jobs during the pandemic" says Adv Visalia Tiwari.

Another intervenor says Cibil score of people who had taken moratorium is getting affected. Prayer made that court must look into.

"Please waive off the interest too," says the IA..

Intervenor Contract Carriage Operator submit that people who own small buses and carts.

"This is the first sector to hit and last to revive when economy gets back on track."

IA says Atmabirbhar bharat scheme will not be applicable to them and thus petitioners seek relief

Senior Advocate Harish Salve for Indian Banks Association : Restraining order on banks qua classifying accounts as NPA should be vacated. Banks are rendered helpless against defaulting borrowers.

#SupremeCourt
#LoanMoratorium

Adv Ravindra Srivastava submits the court is not informed about any national plan for disaster management by the Centre along with guidelines for minimum standard of relief.

Srivastava: The disaster management act states that when there is a disaster of severe magnitudes then there is relief in loans and loans are granted to one's affected by the disaster

Supreme Court to take up further hearing on Wednesday.

Senior Adv Harish Salve: by everyday banks are incurring losses

SC: Most likely we will conclude hearing on Wednesday

Senior Adv Salve: Can the banks be prevented from providing the over drawing facility.

SC: We will consider this on Wednesday.

Matter over.