# In the matter of Gajendra Sharma Vs. Union of India and Anr. WRIT PETITION (CIVIL) NO.825 OF 2020

> SC judgment dated 2020-11-27. Citation: TCN-2020-SC-00005. The writ petition was filed under Article 32 of the Constitution, with the petitioner seeking…

- **Court:** SC
- **Order date:** 27 Nov 2020
- **Citation:** TCN-2020-SC-00005
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/gajendra-sharma-vs-union-of-india-and-anr-writ-petition-002b3a74

## Summary

### Background

The writ petition was filed under Article 32 of the Constitution, with the petitioner seeking directions to declare a notification dated 27.03.2020 issued by the Reserve Bank of India as ultra vires, specifically concerning the charging of interest on loan amounts during the moratorium period. The petitioner, Gajendra Sharma, had availed a home loan from ICICI Bank. The COVID-19 pandemic led to a nationwide lockdown, impacting livelihoods and the economy. The Reserve Bank of India issued notifications allowing for the rescheduling of payments for term loans and working capital facilities. The petitioner argued that the imposition of interest during the moratorium period was ultra vires and violated Article 21 of the Constitution.

## Facts

Gajendra Sharma, the petitioner, filed a writ petition challenging the notification issued by the Reserve Bank of India (RBI) on 27.03.2020, which allowed banks to charge interest on loan amounts during the moratorium period announced due to the COVID-19 pandemic. Sharma had availed a home loan of Rs. 37,48,000 from ICICI Bank. The petitioner contended that the imposition of interest during the moratorium period was ultra vires and violated Article 21 of the Constitution, arguing that it defeated the purpose of the moratorium, which was to provide relief to borrowers affected by the lockdown. The RBI's notification allowed lending institutions to grant a moratorium of three months on payment of installments falling due between March 1, 2020, and May 31, 2020, with

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## Issues and analysis

### Issue 1: Whether the notification dated 27.03.2020 issued by the Reserve Bank of India, allowing for the …

**Ratio:** The principle of statutory interpretation requires that notifications and regulations

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**Reasoning:** The court considered the petitioner's argument that the notification was ultra vires

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**Interpretation:** The legal issue revolves around the interpretation of the RBI's powers and the

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**Application:** The court ultimately did not explicitly rule the notification ultra vires.

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## Parties

- **Judges:** Ashok Bh…; R. Subhash…; +1 more
- **Appellants:** Gajendra…
- **Respondents:** Union of…
- **Advocates:** Rajiv D…; Rajiv…; +1 more

## Timeline

- **2020-03-27 — RBI Notifi…**: Reserve Bank of India issued a notification allowing for the rescheduling of payments for…
- **2020-03-01 — Moratorium…**: The moratorium period was granted for installments falling due between March 1, 2020, and…

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