PARTHAS TEXTILES Vs. HDB FINANCIAL SERVICES LTD.

JUDGEMENT

(1.) Aggrieved by the non-consideration of Ext.P4 application for sanction of financial assistance under Ext.P1 Emergency Credit Line Guarantee Scheme, envisaged by the 2nd respondent, the petitioner is before this Court.

(2.) The petitioner states that the 2 nd respondent has formulated the Emergency Credit Line Guarantee Scheme (ECLGS) to provide 100% guarantee coverage for the Guarantee Emergency Credit Line to eligible borrowers, in the form of a pre-approved sanction limit of up to 20% of loan outstanding, as on 29.02.2020, to eligible borrowers. The petitioner states that the petitioner is squarely covered under Ext.P1 Scheme and fulfills various parameters contained therein. The petitioner is eligible and entitled for the benefit under the Scheme.

(3.) The petitioner therefore submitted Ext.P7 application to the 1st respondent seeking financial assistance under the ECLGS. However, the petitioner's application is not being considered. The petitioner has a further case that as per Exts.P3 and P4 Circulars, the 3 rd respondent-RBI announced a resolution frame work for Covid-19 related stress with intend to facilitate revival of real sector activities and mitigate the impact on the ultimate borrowers, providing a window under the prudential frame work, to enable the lenders to implement a resolution plan, in respect of eligible corporate exposures, without change in ownership. The two years moratorium extended for Covid-19 related stress was also not provided to the petitioner by the 1 st respondent, in violation of Exts.P3 and P4.