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The Hindu
The Hindu
National
Legal Correspondent

HC refuses to direct banks to suspend EMIs

The Madras High Court on Thursday dismissed as withdrawn a public interest litigation petition filed by a lawyer seeking a direction to the Union Finance Ministry and Reserve Bank of India to instruct banks and other financial institutions to extend the moratorium for repayment of all kinds of loans till July 31 and not to levy interest on delayed payments.

Justices M. Sathyanarayanan and M. Nirmal Kumar refused to entertain the petition after Chevanan Mohan, counsel for RBI, told the court that it was for the Centre and the apex bank to take a call on issues having financial implications and not for courts to issue directions.

Multiple prayers

He also said the litigant had sought multiple prayers which were beyond judicial scrutiny.

In his petition, the litigant B. Ramkumar Adityan had also insisted upon suspending Electronic Clearance Services (ECS), for collecting Equated Monthly Instalments (EMIs), till July 31. He further wanted repayment of the cheque dishonour charges or ECS non-clearance charges and other charges, if any, levied by the banks for default after March 1.

The Division Bench also dismissed on merits yet another petition filed by the same lawyer with a plea to open temporary markets in schools, colleges and community halls to decongest regular markets and to issue coloured passes, depending upon age group, to the people for stepping out of their houses on different days of the week for purchasing essentials.

Stating that these were administrative issues to be taken care of by bureaucrats, the Bench said, the petitioner was possibly under a wrong impression that courts could interfere with the administration at will and address all problems. They also recorded the submission of Additional Advocate General Narmadha Sampath that government was, in fact, open to good suggestions.

In so far as a third PIL petition filed by Mr. Adityan wanting to ban all local bodies in the State from issuing advertisements, but publication for tender notifications, in the media for a period of one year to offset the financial burden, the judges directed the AAG to submit by Monday the details regarding money spent by civic bodies for placing advertisements.

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