New Delhi, Sep 3: Supreme Court on Thursday ruled that accounts, which defaulted on repayment of loans till August 31 during the moratorium, will not be declared as NPA till further orders.
A bench headed by Justice Ashok Bhushan passed the order after hearing different petitioners and respondents in the case.
The Supreme Court was considering the question of interest to be charged on interest as well as the powers of the Centre and the NDMA under the Disaster Management Act to provide relief on aspect of loan repayment during COVID 19 pandemic.
The court had conducted day-long hearing on Wednesday also when the bench heard arguments advanced by the petitioners.
Today, Solicitor General Tushar Mehta made his submissions for the RBI.
Mehta said that steps needed to be taken by the authorities required to take note of following aspects – reduction of immediate pressure of payment of installments, revival of all possible sectors and restructuring of stressed assets.
Mehta explained the scope of various types of borrowers and lenders and the different types of distress faced by different classes.
He said, the impact of Covid is faced by everyone but the impact is different for every sectors. Impact is good also on some sectors like Pharma and IT sectors.
Justice Bhushan said, the main grievance of the petitioners is that they have not been given the adequate relief and the NDMA under the DM Act has not been active to give relief.
Justice Bhushan said, whether under DM Act something more has to be done by NDMA and other authorities? You have rightly said that other circulars are not under challenge so we are bound by Article 32 jurisdiction.
“Accounts not declared NPA as on August 31 not to be declared NPA for two months”, the Apex Court said today, and will re-commence hearing on September 10.