Supreme Court in the case of Gajendra Sharma Versus Union of India

Case Covered:

Gajendra Sharma

Versus

Union of India

Facts of the Case:

By this writ petition filed under Article 32 of the Constitution, the petitioner has prayed for directions declaring the notification dated 27.03.2020 issued by the Reserve Bank of India as ultra vires to the extent it charges interest on the loan amount during the moratorium period.

Observations:

We have considered the submissions of the learned counsel for the parties and have perused the records.

The pandemic COVID-19 has not only caused a serious threat to the health of the people but has also cast its shadow on the economic growth of the country as well as other countries in the entire world. Due to the lockdown imposed by the Government of India in the exercise of powers under the Disaster Management Act, 2005, there can be no denial that most of the businesses including the private sector as well as the public sector have been adversely affected. For several months, a large number of industries were not allowed to function and exemptions were granted only to a few of the industries to run and carry on its activities, which were found essential and necessary in the fact situation. Although, gradually, due to Unlock- 1, 2 and 3, the industries and other business activities have been restored and the economy of the country is on track although at a slow pace. The moratorium period as granted by the Reserve Bank of India vide orders dated 27.03.2020 and 23.05.2020 have continued from 01.03.2020 to 31.08.2020, i.e., for the period of six months. As submitted by the learned Solicitor General and reflected by the affidavits filed on behalf of the Union of India, it is clear that Central Government was fully conscious of the difficulties faced by the various sectors and the stakeholders of various sectors and different measures by the Finance Ministry have been taken in the above reference, which has been detailed in the affidavits dated 31.08.2020, 09.10.2020 and 23.10.2020.

Learned Solicitor General referring to above measures taken by the Union of India submits that above measures have been taken by the Government of India in the exercise of jurisdiction under the Disaster Management Act, 2005 to mitigate the hardships and miseries of few sectors. Shri Mehta submits that with regard to other specified sectors, different other measures have been taken, which we need not note for the purposes of this case and which shall be separately considered while considering writ petitions raising such issues.

The Decision of the Court:

As noted above, Shri Rajiv Dutta, learned senior counsel for the petitioner has expressed its satisfaction with the measures taken by the Government of India redressing grievances of the petitioner to the extent noted above. The Union of India has taken specific measures to vide its circular dated 23.10.2020, which has been brought on the record and follow-up measures have also been taken in consequence thereof, we dispose of the present writ petition with directions to the respondents to ensure that all steps be taken to implement the decision dated 23.10.2020 of the Government of India, Ministry of Finance so that benefit as contemplated by the Government of India percolates to those for whom the financial benefits have been envisaged and extended. All IAs, impleadment applications stand disposed of.

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