Excelsior Correspondent
SRINAGAR, July 2: In a Public Interest Litigation (PIL) filed by President, Restaurant and Cafe Association and President, Industrial Revival and Development Forum, Kashmir seeking waiver of the interest component on the loan amounts for the period of moratorium, Division Bench of High Court comprising Justice Ali Mohammad Magrey and Justice Rajnesh Oswal today issued notice to the respondents returnable before the next date of hearing.
Senior Advocate Jahangir Iqbal Ganai and Advocate Sheikh Umar Farooq appeared for the PIL which has been filed for the benefit of persons, who have availed loan facilities from different banks but on account of the prevailing lockdown are not in a position to pay the due instalments including the interest charged on the loan amounts.
The petitioners are also seeking a direction to the respondents for waiving of interest on the term loans during the period when moratorium was granted by the banks on account of special rehabilitation/ revival package for the persons affected by natural calamity-floods in the erstwhile State of Jammu and Kashmir; rehabilitation package to borrowers hit by the disturbances that occurred in the erstwhile State of Jammu and Kashmir in 2016 and 2019 and present COVID-19 pandemic.
“Upon the announcement of the national lockdown due to COVID-19, a notification was issued by respondent thereby permitting all term loans to be granted a moratorium of three months on payment of all instalments falling due between 1st of March, 2020 and 31st of March, 2020. However, while granting a moratorium, it has been provided that interest shall continue to accrue on the outstanding portion of the term loans during the moratorium period”, the PIL said.
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