GAJENDRA SHARMA versus UNION OF INDIA AND ANR.

GAJENDRA SHARMA versus UNION OF INDIA AND ANR.

Writ petition was disposed of because the petitioner’s grievance was addressed by the Government of India’s decision and the Ministry of Finance scheme dated 23.10.2020 which covered housing loans up to Rs.2 crores by providing ex-gratia payment of the difference between compound and simple interest for 1.3.2020 to 31.8.2020; the Court directed respondents to implement that decision so the envisaged financial benefits percolate to eligible borrowers.

Parties
Petitioner: Gajendra Sharma; Respondent: Union of India; Respondent: Reserve Bank of India
Jurisdiction
India
Judgment Date
27 November 2020
Procedural Posture
Writ Petition (civil) / Disposed
Outcome
Writ petition disposed of
Legal Topics
Moratorium on Loans, Interest Accrual During Moratorium, COVID 19 Relief, Ex Gratia Payment Scheme
Disaster Management Act, 2005 Banking/finance Constitutional Law Administrative Law Moratorium on Loans Interest Accrual During Moratorium COVID 19 Relief Ex Gratia Payment Scheme

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Parties

Gajendra Sharma

Petitioner

Union of India

Respondent

Reserve Bank of India

Respondent

Procedural Posture

Writ Petition (civil) / Disposed

Legal Issues

  1. 1 Whether the RBI notification dated 27.03.2020 charging interest during the moratorium period is ultra vires
  2. 2 Whether charging interest during the moratorium period violates Article 21 or principles of natural justice
  3. 3 Whether the Government of India’s scheme dated 23.10.2020 adequately remedies the grievance of the petitioner

Ratio Decidendi

Writ petition was disposed of because the petitioner’s grievance was addressed by the Government of India’s decision and the Ministry of Finance scheme dated 23.10.2020 which covered housing loans up to Rs.2 crores by providing ex-gratia payment of the difference between compound and simple interest for 1.3.2020 to 31.8.2020; the Court directed respondents to implement that decision so the envisaged financial benefits percolate to eligible borrowers.

Court Disposition

Writ petition disposed of

Orders

  • Writ Petition (Civil) No.825 of 2020 disposed of.
  • Respondents directed to ensure all steps are taken to implement the Government of India, Ministry of Finance decision dated 23.10.2020 so that benefits percolate to eligible borrowers.