Writ Petition Maintainable Against Private Bank For Enforcement Of RBI Circular On Loan Moratorium : Karnataka HC

The Karnataka High Court ruled that a writ Petition under Article 226 of the Constitution of India is maintainable against private banks as regards implementation of the loan moratorium announced by the Reserve Bank of India in the wake of lockdown. Immediately after Lockdown 1, RBI issued a Circular dated 27.03.2020 permitting all lending institutions – commercial Banks, Co-operative Banks, All India Financial Institutions and NBFCs, to grant a moratorium of three months on payment of all term loan instalments falling due between 1st of March 2020 and 31st of May 2020.