The Supreme Court refuses to extend the suspension of the loan, dismissing the application for suspension of interest

The Supreme Court refuses to extend the suspension of the loan, dismissing the application for suspension of interest

The Supreme Court refuses to extend the suspension of the loan, dismissing the application for suspension of interest

New Delhi : The High Court on Tuesday dismissed an application for an extension of the loan suspension.

A bench headed by Justice DY Chandrachud holds that a full interest rate at the time of the loan is not possible.

The court said there were no guidelines available to the government or the Reserve Bank of India to announce specific financial or aid packages.

It stipulated that no interest or penalty interest would be charged at any rate during the suspension of any loan to the borrower and such interest collected should be adjusted.

The Supreme Court refuses to extend the suspension of the loan, dismissing the application for suspension of interest

Bench, however, argued that it could not provide guidelines for providing assistance in certain areas in addition to the government-identified areas.

Keeping such a legal review is not possible in economic policy matters, the court said it was not for the courts to decide what should be the type of financial assistance provided.

Applications relating to bank interest rates on unpaid EMI of borrowers after receiving the RBI loan suspension program on March 1 and August 31, 2020.