Justice Rekha Palli, while hearing a petition filed by the SEWS on Monday, directed the respondent to restrain from declaring the petitioner's accounts as NPA.
"It is, however, made clear that, in case, before the next date, the directive issued by the state of Uttar Pradesh prohibiting the petitioner from demanding fees from its students is withdrawn, the petitioner would be liable to forthwith pay the instalments within one week from the date of the said withdrawal," the court said.
The court also issued a notice to the RBI seeking a direction to the respondent not to declare its pending loan accounts as non-performing assets and a direction to the respondent bank for grant of the moratorium of three months to it in terms of circular issued by the RBI.
Shakuntla Educational and Welfare Society, a charitable society engaged in the business of technology and higher education, pleaded that it had availed six-term loans out of which four-term loans stand fully repaid in accordance with the restructured repayment plan.
The Society, in its petition, said that before the instalments payable in March 2020, could be paid, the pandemic COVID-19 has set in and consequently the RBI provided a moratorium of three months in respect of all term loans as outstanding on March 1.
The Society has said that it will pay the due loan amount within a week from the date of withdrawal of the state government's directive prohibiting the petitioner from collecting fees from the students.
Punjab and Sind Bank opposed the grant of interim relief by primarily contending that the moratorium as envisaged by the RBI is applicable only qua instalments which became payable on or after March 1 and not qua those, which had become due prior to March 1.
The bank submitted that as per the restructured payment plan, the petitioner was liable to make payment of quarterly instalments, and the default instalments in respect whereof the respondent is proposing to declare the petitioner's accounts as NPA.
( With inputs from ANI )