India Bulls Commercial Credit Limited has moved to the Delhi High Court in order to restrain Small Industries Development Bank of India from demanding any amounts during the moratorium.
The Petitioner (India Bulls) had entered into a loan agreement with Small Industries Development Bank of India in which SIDBI had agreed to disburse a loan amount not exceeding Rs.750 crores to India Bulls. Senior Counsel Mr. Rajiv Nayar, counsel for the Petitioner stated that the Petitioner had never been a loan defaulter until now. He further referred to the circular published by Reserve Bank of India owing to the outbreak of Covid-19, giving liberty to all banks to allow moratorium of three months on payment of instalments in respect of all term loans outstanding as on 01.03.2020, subject to the borrower making the said request.
After the Respondent, i.e. Small Industries Development Bank of India, demanded the Petitioner to pay its loan instalments, the Petitioner requested for grant of moratorium for a period of three months to which SIDBI stated that they were awaiting the clarification from Respondent 2, i.e. Reserve Bank of India.
Further, Sanjeev Sagar, Advocate for Small Industries Development Bank of India, submitted that the payment demanded from India Bulls Commercial Credit Limited has also been paid and that, even if the demand from the next month is raised in due course, the Petitioner will not be treated as a defaulter until a clarification is obtained from the Reserve Bank of India.
Therefore, Hon’ble Justice Rekha Palli in the present case disposed off the matter as infructuous. She further stated as follows, “In case the Respondent no. 1 receives a clarification from the Respondent no. 2 that the circular dated 27.03.2020 is not applicable to the Petitioner and therefore makes a demand towards further instalments, the Petitioner would be at liberty to assail the said demand in accordance with law.”