Moratorium – To Give Or Not To Give?

INTRODUCTION

Our previous articles have highlighted the various regulatory measures that have been introduced from time to time by the regulators and government bodies. In particular, the Reserve Bank of India ("RBI") had introduced certain measures on 27th March 2020 ("Covid Regulatory Package") which allowed financial institutions to permit moratorium in line with the said package.

The Covid Regulatory Package was interpreted by the Delhi High Court in the matter of Anant Raj Limited vs Yes Bank Limited and was also discussed in our previous article on the subject. Thereafter, the Bombay High Court has considered the issues in the matter of Transcon Inconia Pvt. Ltd. & Ors. v. ICICI Bank & Ors vide its order dated 11th April 2020 ("said Order") in the matter.