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

Justice Bhushan asks the SG: Then what about this submission that For 90 days no one is going to be declared an NPA? Should we record this in our order?

Salve: That is the rule My Lord. Its not about concessions.

SG says he has understood the problem and that he seeks to take instructions on this.

Justice Bhushan: What about being declared NPA's?

Salve: Banks hate NPA's on their balance sheets. They are not in a hurry.

Supreme Court says that it is Primarily of the view that certain directives have to come from the RBI. What you do, that is for you to decide. Some things have to decided by the GOI or by the RBI Everything can't be left to the banks.

Justice Bhushan: What about those whos situation has worsened? What about mitigation factor for them?

Salve: Not under this circular, but they will get benefit for general scheme. Not that general scheme will not take into account covid19.

Salve: The person who was in default in 2019 can reach out for other schemes but they would not be able to avail the covid19 related scheme. They may go to other schemes. You may be a 2019 defaulter - a relief which you may avail separately.

Justice Bhushan: You may not be right to some extent here. Someone who may not be in default earlier may be so as his situation worsened with covid.

SG: I understand the concern and where the shoe really pinches.

The SG is taking the bench through the RBI Circular which stipulates Bank action

"if in default on February 1st, person is eligible. However, someone who is default in December 2019, cannot avail this as the default may not be covid19 related"

SG: RBI supporting bank - anybody might say this but we have to support the banks as well, it is the system which is also the backbone of economy.

SG urges the court to take note that the Act stipulates the word "may" for the NDMA to step in. "I'm not being technical but I am only saying that the circular stands," he adds,

Justice Bhushan: You might be right there.

SG: Government & NDMA can step in at any stage. The Act says it is not cast in stone that they have to

Justice Bhushan: Their grievance is that no one is stepping in.