Loan Moratorium- Count 90 Days for NPA Declaration
On Friday, Supreme Court adjourned by two weeks pleas asking clarification and modification of 23 March 2021 judgement as it vacated the stay on declaration of loan accounts as Non-Performing Assets.
Advocate Vishal Tiwari filed an application seeking the period of declaring any account as NPA shall be reckoned from March 23. Justice DY Chandrachud and Justice MR Shah were the bench members for this application.
Last year Supreme Court passed an interim order which stated that the accounts which were not NPAs as of August 31, should not be declared as NPAs.
The SC observed that ‘We are the opinion that there shall not be any charge of interest on interest/ compound-interest/ penal interest for the period during the moratorium from any of the borrowers and whatever the amount is recovered by way of interest on interest/compound interest/ penal interest for the period during the moratorium, the small shall be refunded.
’As the applicant stated that the order of non-imposition of NPAs by banks against borrowers has been vacated, the banks in accordance with the law can impose NPA of a uniform account.