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October 13, 2020 / 02:20 PM IST

SC on Loan Moratorium Highlights | Case hearing adjourned to October 14

SC on Loan Moratorium LIVE: The three judge bench comprising of Justices Ashok Bhushan, R. Subhash Reddy & MR Shah assembled at 12 noon and announced that the matter will be taken up at the end of board (i.e. after all other cases in the list have been heard)

SC on Loan Moratorium LIVE: The Supreme Court has adjourned its hearing on a batch of petitions seeking interest waiver during the loan moratorium period to October 14 (tommorow). The three judge bench comprising of Justices Ashok Bhushan, R. Subhash Reddy & MR Shah assembled at 12 noon on October 13 and announced that the matter will be taken up at the end of board (i.e. after

all other cases in the list have been heard), however since since Justice Ashok Bhushan is required to sit in a different combination of Judges in the post lunch session the case was adjourned, Bar & Bench reported. The bench on October 5 heard pleas seeking waiver of accruing interest during the six-month loan moratorium period. The apex court granted Centre and the Reserve Bank of India (RBI) time to file additional affidavits which are likely be addressed today. The SC had on September 3 instructed banks not to declare accounts as non-performing assets (NPAs) until further orders after the Centre on October 2 told the apex court that it would waive compound interest on the repayment of loans of up to Rs 2 crore, a move that would provide relief to individual and micro, small and medium enterprise (MSME) borrowers. The SC has previously said there is "no merit in charging interest on interest".

The RBI had in March announced a moratorium on repayment of term deposits for three months, which was later extended till August 31. The move was intended to provide borrowers relief during the COVID-19 pandemic and expected to give them more time to clear payments of EMIs amid the economic fallout of the lockdown, without being classified as NPAs. On June 4, the central bank said lenders will lose Rs 2 lakh crore if interest is waived during the moratorium period. In its annual report, the central bank also said the moratorium on loan repayments could have an impact on the financial health of banks.  Catch the latest updates here:
  • October 13, 2020 / 02:20 PM IST

    SC on Loan Moratorium | The Supreme Court has adjourned its hearing on a batch of petitions seeking interest waiver during the loan moratorium period to October 14 (tommorow). The three judge bench comprising of Justices Ashok Bhushan, R. Subhash Reddy & MR Shah will hear pleas seeking waiver of accruing interest during the six-month loan moratorium period. First hearing was conducted on October 5 and the hearing on October 13 (today) was deferred as Judge Bhushan is required to sit in a different combination of Judges in the post lunch session. 

  • October 13, 2020 / 01:51 PM IST

    SC on Loan Moratorium LIVE Updates | The case is adjourned till tomorrow, October 14 since Justice Ashok Bhushan is required to sit in a different combination of Judges in the post lunch session. (Bar & Bench)

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  • October 13, 2020 / 01:49 PM IST

    SC on Loan Moratorium LIVE Updates | SC says matter will be taken up tommorow. No time available post lunch: CNBC-TV18

  • October 13, 2020 / 01:32 PM IST

    SC on Loan Moratorium LIVE Updates | Only 1 more case to be heard before the interest waiver case is taken up by SC. The last case, before the interest waiver case, is a case of Rape Accused Gayatri Prajapati seeking interim bail, claiming poor health. Govt has argued that Prajapati requires no treatment that needs hospitalization. Case is taking more time than expected: CNBC-TV18

  • October 13, 2020 / 01:10 PM IST

    SC on Loan Moratorium LIVE Updates | SC has to go through a total of 24 other cases to consider, before arriving at the interest waiver case. So far, SC has heard 23 of the 24 cases and only 1 more case to be heard by Justice Bhushan led bench of SC, before considering interest waiver case: CNBC-TV18

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  • October 13, 2020 / 12:58 PM IST

    SC on Loan Moratorium | Moratorium period exceeding six months may result in vitiating overall credit discipline: RBI to SC
    A loan moratorium exceeding six months might result in vitiating the overall credit discipline, which will have a debilitating impact on the process of credit creation in the economy, the Reserve Bank of India has told the Supreme Court. In an affidavit filed in the apex court in the loan moratorium case, the RBI has said that a long moratorium period could impact credit behaviour of borrowers and increase the risks of delinquencies post resumption of scheduled payments. The banking regulator fled the affidavit in pursuance to the apex court's October 5 order asking the Centre and the RBI to place on record the KV Kamath committee recommendations on debt restructuring because of COVID-19 related stress on various sectors as well as the notifications and circulars issued so far on loan moratorium. Read more here

  • October 13, 2020 / 12:25 PM IST

    SC on Loan Moratorium LIVE Updates | The 3-bench of Justices Ashok Bhushan, R. Subhash Reddy & MR Shah assembled at 12 noon. Bench announces that the matter will be taken up at the end of board (i.e. after all other cases in the list have been heard). (LiveLaw)

  • October 13, 2020 / 12:19 PM IST

    JUST IN | The Bench of Justices Ashok Bhushan, R Subhash Reddy and MR Shah will take up the case for hearing at end of the board (Bar & bench) 
    SC has "passed over" the interest waiver case. Now will be taken up later today: CNBC-TV18

  • October 13, 2020 / 11:51 AM IST

    SC on Loan Moratorium | Going any further from relief announced would be detrimental to economy, Centre tells SC
    The Centre has told the Supreme Court that going any further than the fiscal policy decisions already taken, such as waiver of compound interest charged on loans of up to Rs 2 crore for six months moratorium period, may be "detrimental" to the overall economic scenario, the national economy and banks may not take "inevitable financial constraints".
    The Union Finance Ministry, through its additional secretary Pankaj Jain, filed the affidavit in compliance of the top court's October 5 order asking it to place on record the K V Kamath Committee recommendations on debt restructuring in view of COVID-19 related stress on various sectors as well as the notifications and circulars issued so far on the loan moratorium and financial difficulties. Read more here

  • October 13, 2020 / 11:27 AM IST

    SC on Loan Moratorium | Supreme Court will resume its hearing on the batch of petitions seeking relief in the form of extension of moratorium period beyond six months or waiver of interest on interest.
    > The RBI  in its latest affidavit before the SC has said that a further extension of moratorium beyond six months is unsustainable. The central bank also urged the SC to vacate the stay given on Banks from classifying loan accounts as NPAs.
    > Centre had earlier agreed to waive compounded interest for loans up to Rs 2 crore and undertook to bear the economic burden caused by it. In the latest affidavit, Centre said that questions of financial stress management cannot be decided judicially.
    (Bar & Bench)

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  • October 13, 2020 / 11:07 AM IST

    SC on Loan Moratorium | Supreme Court to consider Interest Waiver Case at 12 noon: CNBC-TV18

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