In a move that provides clarity on what could have potentially
become a sticky point in the interpretation of the regulatory
guidelines issued by the RBI, the Delhi High Court has ordered that
the RBI moratorium is applicable even to loans which were on
default as on 01.03.2020.
The case was filed by a company namely Anant Raj Limited against
the classification of its account as a Non Performing Asset (NPA)
by Yes Bank. Briefly, the Company had failed to pay its loan
installments since 01.01.2020 and in keeping with the
classification prescribed by the RBI, the Company's account was
initially classified as Special Mention-I Account (SMA-I) and
subsequently as Special Mention-II Account (SMA-II). Yes Bank, on
27.03.2020, proceeded to issue an e-mail wherein it communicated
that the company's account will be declared as an NPA should
the outstanding dues not be cleared by 31.03.2020.The Company,
before the Hon'ble Court, claimed the benefit of the guidelines
issued by
