Supreme Court declines plea seeking clarification on stay on Declaration of Loan Accounts

Supreme court Law Insider INSupreme court Law Insider IN

Anshika Tiwari-

The Supreme Court refused to entertain a plea seeking modification of its March 23 judgment. In the said judgment, the Supreme Court had annulled the stay on declaration of loan accounts as Non-Performing Assets.

An  application was filed by Advocate Vishal Tiwari to seek  clarification  that the period of declaring any account as Non Performing Assets shall be calculated  from the date of the above judgment that is March 23. 

The applicant has stated that as the order of non-imposition of NPA by the banks against the borrowers has been vacated through the judgement dated 23rd March, the banks in accordance with the law can impose NPA of a standard account if there arises default. 

Therefore, the issue that the period of 90 days for the computation of declaration of standard account as Non-Performing Asset should start from the day of Supreme Court’s judgement on March 23rd  needs clarification. 

The bench of Justice DY Chandrachud and Justice MR Shah while adjudicating told Advocate Tiwari that being a substantial issue, the relief on it cannot be sought through a Miscellaneous Application (MA).

“An MA is filed when you want some correction. What you have filed is a substantive relief. We will not entertain this”, Justice Chandrachud said.

On September 3 last year, the Supreme Court had passed an interim order that the accounts, which were not NPAs as of August 31, should not be declared so.

The order was passed in response to petitions seeking extension of loan moratorium, waiver of compound interest etc., in view of the pandemic.

The court disposed of the petitions through its March 23 judgement and also lifted the restriction on the declaration of accounts as NPA.

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