1. Writ petition seeking Mandamus for remedial measures to address financial stress and hardship faced by borrowers during the pandemic. (Para 2 , 3 )
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2021 Supreme(SC) 1203
SUPREME COURT OF INDIA
ASHOK BHUSHAN, M.R. SHAH, JJ.
Vishal Tiwari – Petitioner
Versus
Union Of India & Ors. – Respondents
Writ Petition(s)(Civil) No(s). 541 of 2021
Decided On : 11-06-2021
Advocates Appeared:
For the Petitioner:Petitioner-in-person
For the Respondents: Mr. Tushar Mehta, SG, Ms. Aishwarya Bhati, ASG, Mr. Rajat Nair, Adv., Mr. Kanu Agrawal, Adv., Mr. B.V. Balramdas, AOR
For the Petitioner:Petitioner-in-person
For the Respondents: Mr. Tushar Mehta, SG, Ms. Aishwarya Bhati, ASG, Mr. Rajat Nair, Adv., Mr. Kanu Agrawal, Adv., Mr. B.V. Balramdas, AOR
The Court held that providing financial relief and measures to address borrower stress are policy matters within the domain of the Government and the Reserve Bank of India; therefore, the judiciary will not issue directions on such policy-related decisions.
Headnote:(A) Reserve Bank of India Circular dated 05.05.2021 - Writ of Mandamus - Financial stress faced by borrowers during Covid-19 - The petitioner sought to compel the respondents to take action beyond the Circular addressing borrower's hardships. The court denied the request, highlighting that financial relief is a policy matter for the Government. (Paras 2-6)
(B) Policy Matters - Issues around financial measures fall within the executive domain, and the judiciary will not intervene in policy decisions of the Union of India and the Reserve Bank of India. (Paras 5-6)
Facts of the case:
The petitioner contended that the RBI's Circular does not adequately mitigate the financial difficulties experienced by borrowers due to the lockdown.
Findings of Court:
The court refused to issue any writ mandating further action, emphasizing the nature of the matters as policy-driven.
Issues: The core issue was whether the court could intervene to mandate financial assistance measures amidst the pandemic.
Ratio Decidendi: The court held that financial relief is a policy decision best left to the Government and cannot be mandated through a writ.
Result: Writ petition disposed of.
Legal Category Hierarchy
Table of Contents
2. Submission that existing regulatory circulars regarding the resolution of stress for small and medium enterprises are insufficient to address borrower hardship. (Para 4 )
3. Financial relief measures are policy matters falling within the domain of the Government and the central bank. (Para 5 , 6 )
4. Matters pertaining to financial relief and economic measures are policy decisions and thus not subject to judicial direction via writ of mandamus. (Para 5 , 6 )
5. Writ petition and pending applications disposed of without granting the prayed directions. (Para 6 , 7 , 8 )
6. Can the court issue a writ of mandamus to direct the government to provide financial relief to borrowers?
No, because financial relief and other remedial measures are considered policy matters within the domain of the Government and the Reserve Bank of India. (Para 5 , 6 )
7. What is the judicial approach toward petitions challenging the sufficiency of regulatory circulars on financial stress?
Such issues are treated as policy matters, and it is for the Union of India and the Reserve Bank of India to consider and take appropriate decisions. (Para 6 )
ORDER :
1. Heard Mr. Vishal Tiwari, the petitioner appearing in person.
2. By this petition, the petitioner has prayed to issue a writ of Mandamus or any other writ directing the respondents to take effective and remedial measures to redress and overcome the financial stress and hardship faced by the borrowers of the country during the second wave of Covid 19 and lockdown.
3. The petitioner has annexed the Circular of the Reserve Bank of India (RBI) dated 05.05.2021 (Annexure P3), by which the Reserve Bank of India has issued Resolution of Covid 19 related stress of Micro, Small and Medium Enterprises (MSMEs).
4. The petitioner appearing in person submits that the Circular does not sufficiently address the hardship of the borrowers.
5. Be that as it may, the financial relief and other measures are in the domain of the Government and essentially related to policy matter. The similar argument we have heard and decided in the Writ Petition (C) No. 825 of 2020 titled Gajendra Sharma v. Union of India & Anr.
6. We are, thus, of the view that no direction, as prayed in the writ petition, be passed. We, however, observe that all the issues, which are raised, are policy matters and it is for the Union of India and the Reserve Bank of India to consider and take appropriate decision.
7. The writ petition is disposed of.
8. Pending applications stand disposed of.
