Petition filed in SC against steps taken by RBI under the COVID-19 Regulatory Package

The Small Scale Industrial Manufactures Association filed a petition in the Supreme Court of India challenging the Reserve Bank of India's (RBI) COVID-19 Regulatory Package. The association argued that the relief measures, including loan terms, working capital facilities, and account restructuring, were insufficient and ineffective for MSMEs facing financial strain due to the pandemic. They sought directions for lending institutions to waive interest on term loans and working capital, and to allow restructuring of stressed accounts.

IN THE SUPREME COURT OF INDIA
CIVIL ORIGINAL JURISDICTION

WRIT PETITION (C) NO. 476 OF 2020

Small Scale Industrial Manufactures
Association (Regd.) …Petitioner

Versus

Union of India and others …Respondents

WITH
WRIT PETITION(C) NO. 542 OF 2020
WRIT PETITION(C) NO. 945 OF 2020
WRIT PETITION(C) NO. 937 OF 2020
WRIT PETITION(C) NO. 1024 OF 2020
WRIT PETITION(C) NO. 1025 OF 2020
WRIT PETITION(C) NO. 1006 OF 2020
WRIT PETITION(C) NO. 959 OF 2020
WRIT PETITION(C) NO. 955 OF 2020
WRIT PETITION(C) NO. 506 OF 2020
WRIT PETITION(C) DIARY NO. 12389 OF 2020
WRIT PETITION(C) NO. 568 OF 2020
WRIT PETITION(C) NO. 606 OF 2020
WRIT PETITION(C) NO. 608 OF 2020
WRIT PETITION(C) NO. 711 OF 2020
WRIT PETITION(C) NO. 785 OF 2020
WRIT PETITION(C) NO. 802 OF 2020
WRIT PETITION(C) NO. 829 OF 2020
WRIT PETITION(C) NO. 826 OF 2020
WRIT PETITION(C) NO. 964 OF 2020
WRIT PETITION(C) NO. 1029 OF 2020
WRIT PETITION(C) NO. 1157 OF 2020
WRIT PETITION(C) NO. 1132 OF 2020
WRIT PETITION(C) NO. 1178 OF 2020
WRIT PETITION(C) NO. 1190 OF 2020

J U D G M E N T

M.R. SHAH, J.

1. Writ  Petition  (Civil)  No. 476  of 2020 has  been  preferred under Article 32 of the Constitution of India by the Small ScaleIndustrial Manufactures Association, Haryana for an appropriatewrit, direction or order directing the Union of India and others totake  effective and remedial  measures to  redress  the financialstrain faced by the industrial sector, particularly MSMEs due to the Corona Virus Pandemic. It appears that the writ petitioner is not satisfied with the steps taken by the RBI vide notification dated   27.03.2020.     According   to   the   petitioner,   the   Covid­19 Regulatory Package notified by the RBI vide notification dated 27.03.2020 insofar as the terms loans, working capital facilities and restructuring of Stressed Account is inadequate, ineffective and does not offer any substantial relief, aid or assistance to the industries particularly MSMEs. 

(a) issue writ/writs including a writ of mandamus or any other writ or direction in the nature thereof, directing the respondents to permit the lending institutions not to recover   interest   component   from   the   industries particularly MSMEs on Term Loans and Working Capital Facilities   availed   by   them   for   three   months   from 01.03.2020 to 31.05.2020;

(b) issue writ/writs including a writ of mandamus or any other writ or direction in the nature thereof, directing the   respondents   to   permit   the   lending   institutions   to grant interest free moratorium period for Term Loan and not recovery of interest on Working Capital Facilities for three months from 01.03.2020 to 31.05.2020;

(c) issue writ/writs including a writ of mandamus or any other writ or direction in the nature thereof, directing the   respondents   to   allow   restructuring   of   Stressed Accounts;

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