Thread by @barandbench

#SupremeCourt to shortly pronounce its verdict in the RBI #LoanMoratorium case

Pleas pertained to charging of interest on interest by banks on EMIs which have not been paid by borrowers after availing the loan moratorium scheme of RBI during March 1 to August 31 @RBI

Justice MR Shah: Petitioners wanted complete waiver and sector specific reliefs.

Justice MR Shah: scope of judicial review on economic policy decisions and policy decisions with affect on economy has to be considered. Judgments have held how limited the scope is in such situations.

Justice MR Shah: It has been held that it's neither within judicial domain on whether a policy is Fit or if a different fairer could have been adopted.

Justice MR Shah: what is an economic policy or what will be financial package be will be decided by the Centre and RBI after detailed consulations. Only if some sectors are not satisfied Court Cannot intervene in such matters of policy

Justice Shah: Judges should encroach in areas of economic policy waringly. Decision must be left to the Government on what policy had to be adopted even if a second view is possible. Scope of judicial review into govt policy is well defined.

Justice Shah: Courts are not advisers to the executive on matters of economic policy. Pandemic affected all sectors and govt had to take measures such as providing transport to migrants etc. Even govt had no support during Pandemic and even GST loss that was incurred

Justice Shah: What will be the over all impact of policies on economy is something for which the courts do not have any expertise.

Justice Shah: We have considered reliefs independently. Waiver of complete interest is not possible as banks have to pay interest to account holders and Pensioners.

Justice Shah: From various steps taken by Centre and RBI, it cannot be said that centre has not taken steps in backdrop of COVID19. Therefore petitioners will not be eligible for waiver of interest on interest, extend moratorium period, or sector specific reliefs

Justice Shah: Granting of any such relief will have far reaching economic implications..we have seen National Plan under DMA is there. DMA 2005 Is a complete code in itself.

Justice Shah: It cannot be said that function of all Ministries can be discharged after DMA is in place or its role is transferred to the DMA authority.

Justice Shah: There is no justification of not charging interest on interest for loans upto Rs 2 crore only. Even otherwise scheme granting waiver of compound interest has been considered. Govt has provided deferment of moratorium.

BREAKING: Justice Shah: We are of the opinion that there shall be no interest on interest or compensation interest during moratorium period irrespective of loan amount. Any such amount collected shall be refunded.

Justice Shah: There shall be additional measures taken to grant sector specific reliefs by @RBI

Justice Shah: if refund is not possible, the interest on interest collected shall be adjusted in the next installment payable.

Error in third last tweet:
Not compensation: Compound
#SupremeCourt
@RBI
#LoanMoratorium

[BREAKING] Supreme Court orders that there shall be full waiver of interest on interest in Loan Moratorium case

#LoanMoratorium #Interest #RBI @RBI #supremecourtofindia #SupremeCourt

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