SC judgment said- can not be ordered to waive full interest: Loan Moratorium Case. The Supreme Court on Tuesday delivered its much-awaited verdict in the Lone Moratorium case.
The SC in its judgment said that the interest of the term of the loan moratorium cannot be ordered to be completely waived.
Justice MR Shah pronounced the judgment saying that it is not possible to forgive the entire interest because the decision will also affect the depositors.
The Supreme Court said that after the various steps taken by the RBI and the central government, it cannot be said that they did not solve the problems of the borrowers.
The Supreme Court in its decision mainly stated these things.
Justice MR Shah, while delivering his judgment on the Lone Moratorium case, said that no writ of mandamus (writ of mandamus) can be issued in this case. He said that the central government has to take a decision in this matter.
Justice Shah has said that the court will not debate academic matters related to trade and commerce. We cannot judge that public policy could have been better. The government has its own limitations to resolve this issue.
According to Justice Shah, the Supreme Court has heard the parties concerned in the case and there is no scope for judicial review in the matter.
The Supreme Court held that it is not possible to completely waive interest as they have to pay interest from account holders to depositors and pensioners.
The Supreme Court denied any interference in the loan moratorium policy of the government and the RBI.
Along with this, he also refused to extend the loan moratorium period beyond six months.
The Supreme Court said that the borrowers will not be charged interest or penal interest on the interest for the moratorium period.
The Supreme Court said that if any kind of charge has been taken earlier, it will be refunded, credited, or adjusted.
The Supreme Court gave this ruling while hearing petitions filed on behalf of various trade associations including real estate and power sector.
These petitions urged the Supreme Court to order an extension of the term of the loan moratorium.