The Supreme Court on Friday rejected a plea seeking a fresh loan moratorium relief in the wake of the second Covid wave as implemented in the aftermath of the first, saying such decisions with financial ramifications are best left to the policymakers the government and RBI as “judges are not experts in financial matters”. The court also turned down the other connected pleas of the petitioners for extension of time period under the RBI’s restructuring scheme for specific sectors based on Kamath Committee recommendations and temporary cessation of declaration of NPAs by banks due to the pandemic’s second wave, as put into effect after the first wave of the pandemic.
A bench of Justices Ashok Bhushan and MR Shah, while refusing to entertain a PIL filed by one advocate Vishal Tiwari, observed that the government had other pressing matters to address like vaccination, issues connected with migrant workers, etc. They further noted that it is for the government to assess the situation and take appropriate decisions and also that RBI had already announced certain financial packages as per its May 6 circular.
The apex court then vacated a September 3, 2020, stay order that restrained banks from declaring as NPAs loan accounts that were not classified as NPAs prior to August 31, 2020.