New Delhi: Justice M R Shah said that the waiver of complete interest not possible as it affects depositors.
Banking stocks rallied after the Supreme Court verdict was out. SBI, IndusInd Bank, ICICI Bank, Axis Bank and HDFC Bank were up between 2% and 2.5%.
The apex court refused to interfere with the Centre’s and RBI’s decision to not extend the loan moratorium beyond August 31 last year, saying it is a policy decision.
A bench headed by Justice Ashok Bhushan said the top court cannot do a judicial review of the Centre’s financial policy decision unless it is malafide and arbitrary.
The apex court said it cannot interfere with the government’s decision to fix priorities for relief during the pandemic which has affected all across the country.
The bench said this in its verdict on a batch of pleas filed by various trade associations, including from real estate and power sectors, seeking an extension of the loan moratorium period and other reliefs in view of the pandemic.
A bench headed by Justice Ashok Bhushan had reserved its verdict on the batch of pleas on 17 December last year.