[Interest On Loan Moratorium Hearing- Day-2] Live- Updates From Supreme Court

Court passes interim orders.

Supreme Court Protects those accounts from being declared as Non-performing assets (NPA's) which were not NPA's as on August 31, till the hearing is disposed off.

Bench dictating order:

"Accounts not declared NPA as on August 31 not to be declared NPA for two months"

Supreme Court to re-commence hearing on September 10.

Salve: Please do not pass any blanket orders. Can create snowballing effect.

Counsel for petitioners say that the petitioners be protected.

Supreme Court says that it proposes to take up the hearing next week.

Justice Bhushan: No account will be NPA for 2 months and the banks should not take action against borrowers which is coercive. We have to protect them.

Salve: No on is taking any action.

Sibal says that he has no issue with deferring the hearing but seeks protection in the interim.

SG: Of course everyone is concerned. What are you saying?

Bench asks Salve his view on compound interest.

Salve: Compound interest is charged as a contractual interest and penal interest is not being charged. On non-payment, the interest becomes penal compounding interest.

Dutta: Banks are only interested in reducing their exposure. Our people have been asked to fall at their feet, to deposit partial amounts. I am asking the bench to be concerned for individual borrowers.

Justice Bhushan says that there is no difficulty to defer the hearing as many counsel are still waiting to be heard.

Dutta: I was just wondering that Mr. Salve truly has information about the operations but I'm appearing for individuals who are hard pressed.

SG says he would like the hearing to be deferred so that he can take instructions.

Senior Advocate Rajiv Dutta seeks to make submissions, says he would like to apprise the bench about how the people are being treated by banks.

Bench says they will give him time to make submissions.