A petition was filed by Advocate Vishal Tiwari in the Honorable Supreme Court seeking issuance of directions to the RBI to extend the moratorium period for the repayment of term loans from 31st August that is the current deadline to 31st December 2020 on account of the economic crisis being faced by these sectors.
In this petition, Advocate Tiwari highlights the plight of various people who are a part of the workforce, more specifically legal professionals and independent litigators and the strain the pandemic has caused with respect to the influx of their incomes due to closure of the physical hearings in various courts of the country including the Supreme Court of India. The PIL clearly states that this is likely to be the scenario with the other sectors as well. In these unprecedented times, with no consistent source of income at hand, the probability of sectors already reeling under a financial crisis, to be in a position to repay their EMI’s by August 31st seem bleak.
Taking this aspect into consideration, “Should banks demand repayment of loans beyond August 31st considering the struggle of inconsistent income to meet the EMI payments?” is the crux question that needs to answer as a situation of this nature would mean the violation of Article 21 and the right to life and livelihood which every Indian citizen is rightly entitled to.
Hence, via the petition, Advocate Vishal Tiwari prays for a direction for an extension of a moratorium until December 31st till the time the courts reopen with a direction to all the banks to adhere to the same with respect to the Lawyers/Service sectors and Transport and Tourist Industry and thereby provide some relief to them in this matter.