Snehal Upadhyay-
Supreme Court dismissed a plea claiming for modification and clarification on the Court’s 23rd March 2021 judgement in which it vacated the stay on declaration of loan accounts as Non-Performing Assets (NPA).
A division bench comprising Justice DY Chandrachud and Justice MR Shah heard the following application filed by Advocate Vishal Tiwari.
The applicant had mentioned that as per the judgement given by the Apex Court on 23rd March, the banks have already ordered for non-imposition of NPA against its borrowers. If any default arises, the bank in conformity with the law can impose NPA for a standard account.
The applicant needed to clarify that the directed period of 90 days for considering and declaring of standard account as NPA should start from the Court’s judgement date or not.
Supreme Court while dismissing the petition said to count 90 days from the date 23rd March 2021, the day the judgement was given for the case.
The Court declared that “We believe that there shall not be any charge of interest on interest/compound-interest/penal interest for the period during the moratorium from any of the borrowers and whatever the amount is recovered by way of interest on interest/compound interest/penal interest for the period during the moratorium, the same shall be refunded.”