𝙇𝙤𝙖𝙣 𝙈𝙤𝙧𝙖𝙩𝙤𝙧𝙞𝙪𝙢 & 𝙄𝙣𝙩𝙚𝙧𝙚𝙨𝙩 𝙒𝙖𝙞𝙫𝙚𝙧- Hearing- LIVE-UPDATES from SC

Salve: Moratorium was put forth because of a lockdown.

Bench: You can always charge penal interest according to the contract?

Salve: This is not Penal interest.

Bench: Compound interest is fine. But can this default interest be charged?

Dutta: What does he mean by this? Mr. Salve we also know the Supreme Court very well. No need to tell us when and how we interject.

Salve now making submissions.

"The entire banking structure works on compound interest and that is what is being done"

Lawyers make submissions one over the other.

Dutta: We have got letters from banks saying that interest on interest will be charged.

Salve interjects. "None of us should be heard, they should have the last word. Half a sentence we speak and 6 people start interjecting"

Bench: Please don't say so. All of us here to find some solution to this.

Justice Bhushan: Wrt interest we have yet to take a decision but on the aspect of debiting of interest on interest, we are inclined to pass an order that it may not be debited.

Senior Advocate Mukul Rohatgi for State Bank: We thought it is not adversarial, so we filed an intervention. Let us file a reply now.

SG: I'm still not taking it adversarial. Petitioners appear to be so.

Salve: This has now become adversarial. Your lordships may kindly implead IBA now in all Writ petitions. We will file our replies within a week. We can't be told this newspaper said this and said that. 

Justice Bhushan: Then there is no order needed to this effect. They will ensure.

SG: I request Your lordships to defer it for only two weeks. Difficult to resist riding the tide. 

Senior Advocate V. Giri for RBI : Downgrading done on an individual basis. Two weeks deferment without any interim orders to this effect important. No averment as such.

Sibal: April 7, 2020's circular of RBI stipulates prevention of downgrading itself.

Salve: No prayers to prevent downgrading in any pleading.

Senior Advocate Kapil Sibal: Prayer is there.

SG: I will respond in two weeks time. I am requesting only for that.

Justice Bhushan: But what is the problem if that is done?

SG: We are taking a holistic view to this. Sibal says something basis the financial express. Sundaram says something new at 10.30 am. Orders like this can have devastating consequences