Quote by Uttara Kolhatkar, Partner, J Sagar Associates on Loan moratorium: Can't allow additional reliefs such as total waiver of interest, says SC.
“Government of India and the RBI through it various schemes and subsidies have been mindful of the anticipated liquidity challenges and related impact, which COVID-19 may have had on the ability of borrowers to continue operating in the ordinary course. Having said that temporary measures viz. the moratorium, etc. introduced to tide over such exigencies like the pandemic, cannot be permanent measures or fixtures, and can only have a limited life- cycle for economic relief. The judicial machinery cannot go beyond its brief. Courts cannot usurp the jurisdiction of decision makers in the garb of Judicial Review. Each wing of the State has the power to act in its own sphere of activity. Courts do not and cannot act as appellate authorities examining the correctness, suitability and appropriateness of a policy nor are courts advisors to the executive wing on matters of policy which the executive is entitled to formulate. Courts cannot usurp or abdicate, and the parameters of judicial review must be clearly defined and never exceeded.” Uttara Kolhatkar, Partner, J Sagar Associates