HC refuses to direct banks to suspend EMIs

RBI counsel says Centre and apex bank will take a call on the issue

24/04/2020, LEGAL CORRESPONDENT,CHENNAI

The Madras High Court on Thursday dismissed as withdrawn a public interest litigation petition filed by a lawyer seeking a direction to the Union Finance Ministry and Reserve Bank of India to instruct banks and other financial institutions to extend the moratorium for repayment of all kinds of loans till July 31 and not to levy interest on delayed payments.

Justices M. Sathyanarayanan and M. Nirmal Kumar refused to entertain the petition after Chevanan Mohan, counsel for RBI, told the court that it was for the Centre and the apex bank to take a call on issues having financial implications and not for courts to issue directions.

Multiple prayers

He also said the litigant had sought multiple prayers which were beyond judicial scrutiny.

In his petition, the litigant B. Ramkumar Adityan had also insisted upon suspending Electronic Clearance Services (ECS), for collecting Equated Monthly Instalments (EMIs), till July 31. He further wanted repayment of the cheque dishonour charges or ECS non-clearance charges and other charges, if any, levied by the banks for default after March 1.

The Division Bench also dismissed on merits yet another petition filed by the same lawyer with a plea to open temporary markets in schools, colleges and community halls to decongest regular markets and to issue coloured passes, depending upon age group, to the people for stepping out of their houses on different days of the week for purchasing essentials.