The petitioner, Shakuntla Educational & Welfare Society, sought a direction from the High Court of Delhi to prevent Punjab & Sind Bank from declaring its loan accounts as Non-Performing Assets (NPA). The petitioner also requested a moratorium of three months on loan repayments, citing a Reserve Bank of India (RBI) circular issued in response to the COVID-19 pandemic. The petitioner, an educational institution, argued that it was unable to collect fees due to a directive from the Uttar Pradesh government prohibiting schools from coercing students to pay fees during the lockdown. The RBI was impleaded as a respondent to clarify the applicability of its circular.
Shakuntla Educational & Welfare Society, the petitioner, is a charitable society running technical and higher education institutions. To establish these institutions, the petitioner availed six term loans from Punjab & Sind Bank, the respondent. Four of these loans were fully repaid under a restructured repayment plan. The petitioner was diligently repaying the remaining two term loans ('V' & 'VI') according to the restructured plan. However, before the March 2020 installments could be paid, the COVID-19 pandemic occurred. The RBI issued a circular on March 27, 2020, providing a three-month moratorium on term loans outstanding as of March 1, 2020. The petitioner sought a direction from the court to prevent the respondent from declaring its accounts as NPA,
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RBI issued a circular providing a moratorium of…
Reliance placed on order dated 06.04.2020…
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The petitioner, Shakuntla Educational & Welfare Society, sought a direction from the High Court of Delhi to prevent Punjab & Sind Bank from declaring its loan accounts as Non-Performing Assets (NPA). The petitioner also requested a moratorium of three months on loan repayments, citing a Reserve Bank of India (RBI) circular issued in response to the COVID-19 pandemic. The petitioner, an educational institution, argued that it was unable to collect fees due to a directive from the Uttar Pradesh government prohibiting schools from coercing students to pay fees during the lockdown. The RBI was impleaded as a respondent to clarify the applicability of its circular.
Shakuntla Educational & Welfare Society, the petitioner, is a charitable society running technical and higher education institutions. To establish these institutions, the petitioner availed six term loans from Punjab & Sind Bank, the respondent. Four of these loans were fully repaid under a restructured repayment plan. The petitioner was diligently repaying the remaining two term loans ('V' & 'VI') according to the restructured plan. However, before the March 2020 installments could be paid, the COVID-19 pandemic occurred. The RBI issued a circular on March 27, 2020, providing a three-month moratorium on term loans outstanding as of March 1, 2020. The petitioner sought a direction from the court to prevent the respondent from declaring its accounts as NPA,
…RBI issued a circular providing a moratorium of…
Reliance placed on order dated 06.04.2020…
Sign in to view related legal provisions.