Loan Moratorium : Supreme Court bench led by Justice Ashok Bhushan is hearing seeking extension of loan moratorium and waiver of interest owing to the Covid19 pandemic along-with sector-specific...
Loan Moratorium : Supreme Court bench led by Justice Ashok Bhushan is hearing seeking extension of loan moratorium and waiver of interest owing to the Covid19 pandemic along-with sector-specific pleas
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2020-12-02 05:46:42
2 Dec 2020 5:58 AM GMT
This cut-off of two crores for borrowers is arbitrary, says Srivastava
There cannot be general classification based on such an arbitrary figure, he adds
2 Dec 2020 5:51 AM GMT
Srivastava is seeking to establish that the classification of small and big borrowers is arbitrary.
2 Dec 2020 5:50 AM GMT
Srivastava is reading guidelines and schemes which were introduced by the government during pandemic.
2 Dec 2020 5:48 AM GMT
Classification has to be based on 2 classes - borrowers of certain segments - below 2 crores and above 2 crores. This has to be grounded on Article 14, says Srivastava
2 Dec 2020 5:47 AM GMT
But Government has to arrange its affairs basis its economic capacity, Justice Bhushan says
2 Dec 2020 5:47 AM GMT
"Augmentation of capacity building and resources needs to be achieved and it is indeed a sacrifice. The Argument of RBI that financial costs will be huge if more reliefs and schemes are given does not hold good," says Srivastava
2 Dec 2020 5:47 AM GMT
This is the doctrine which needs to be applied in order to counter the problems arising out of the pandemic, says Srivastava.
"When Doctrine of Parens Patriae applies, financial constraint as an argument does not survive," he adds
2 Dec 2020 5:47 AM GMT
Senior Advocate Ravindra Srivastava arguing for an industry group.
On the last date, he had argued that Disaster Management Act can override contracts in critical situation.
He is taking the bench through the concept of "Parens Patriae".
