SC adjourns to Dec 3 hearing on pleas seeking loan moratorium extension

The apex court had earlier directed that the bank accounts as on August 31 should not be declared as NPAs until the disposal of the pleas seeking an extension of the moratorium period.

New Delhi: The Supreme Court on Wednesday adjourned to Thursday the hearing on the pleas seeking an extension of the loan moratorium period and waiver of interest on interest on term loans in view of the COVID-19 pandemic.

A bench of the apex court, headed by Justice Ashok Bhushan, fixed the matter for further hearing to tomorrow.

Utsav Trivedi, the lawyer for one of the petitioners, said that these are difficult times and the government must step in to help at this time.

Advocate Vishal Tiwari, one of the petitioners, said that after this situation many accounts will become non-performing assets. He asked how can these situations be handled?

He also stated that the moratorium period must be extended till March 2021, keeping in view the current situation and difficulties people are facing, Tiwari said and added that the stay on non-performing asset (NPA) must continue as the condition imposed for financial restructuring that on the date which borrower and lending Institution agrees on a resolution plan.

The apex court had earlier directed that the bank accounts as on August 31 should not be declared as NPAs until the disposal of the pleas seeking an extension of the moratorium period.

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So if the stay is lifted then, a huge Number of Accounts will turn NPA which will prevent them from resolution plan, Tiwari said. "So the stay shall continue," he pleaded to the court.

Tiwari said that he had filed an application for an extension of moratorium till March 31, 2020, because there is a slump in work and also for directions so that banks and NBFC's do not harass people.

The top court was hearing two pleas filed by Gajender Sharma and lawyer Tiwari, seeking directions to extend the moratorium period to help borrowers in deferring their EMI payment on term loans and for waiver of interest on the loan repayment during the moratorium.

(ANI)