The present Petition had been preferred under Article 32 of the Constitution of India by the Small Scale Industrial Manufactures Association, Haryana for an appropriate writ, direction or order directing the Union of India and others to take effective and remedial measures to redress the financial strain faced by the industrial sector, particularly MSMEs due to the Corona Virus Pandemic.

The reliefs of the Petitioners has been summarised as under: 

1. i) a complete waiver of interest or interest on interest during the moratorium period;
2. ii) there shall be sector­wise relief packages to be offered by the Union of India and/or the RBI and/or the Lenders;

iii) moratorium to be permitted for all accounts instead of being at the discretion of the Lenders;

31. iv) extension of moratorium beyond 31.08.2020;
32. v) whatever   the   relief   packages   are   offered   by   the   Central Government and/or the RBI and/or the Lenders are not sufficient looking to the impact due to Covid­19 Pandemic and during the lockdown period due to Covid­19 Pandemic;
33. vi) the last date for invocation of the resolution mechanism, namely, 31.12.2020 provided under the 6.8.2020 circular should be extended.

Held:

In catena of decisions and time and again this Court has considered the limited scope of judicial review in economic policy matters. It is further observed that in the case of a policy decision on economic matters, the courts should be very circumspect in conducting   an   enquiry   or   investigation   and   must   be   more reluctant to impugn the judgment of the experts who may have arrived at a conclusion unless the court is satisfied that there is illegality in the decision itself.It is further observed that it is not the function of the Court to amend and lay down some other directions.  The function of the court is not to advise in matters relating to financial and economic policies for which bodies like RBI are fully competent. The court can only strike down some or entire directions issued by the RBI in case the court is satisfied that the directions were wholly   unreasonable   or   in   violative   of   any   provisions   of   the Constitution or any statute.  It would be hazardous and risky for the courts to tread an unknown path and should leave such task to   the   expert   bodies.     This   Court   has   repeatedly   said   that matters of economic policy ought to be left to the government.

Economic and fiscal regulatory measures are a field where Judges should encroach upon very warily as Judges are not experts in these matters. In assessing the propriety of the decision of the Government the court cannot interfere even if a second view is possible from that of the government. Legality of the policy, and not the wisdom or soundness of the policy, is the subject of judicial review.

Even   the   government   also   suffered   due   to lockdown, due to unprecedented covid­19 pandemic and also even lost the revenue in the form of GST.  Still, the Government   seems   to   have   come   out   with   various   reliefs/packages. Government has its own financial constraints.   Therefore, no   writ   of   mandamus   can   be   issued   directing   the Government/RBI to announce/declare particular relief packages and/or to declare a particular policy.

That there shall not   be   any   charge   of   interest   on   interest/compound interest/penal interest for the period during the moratorium from any of the borrowers and whatever the amount is recovered by way of interest on interest/compound interest/ penal interest for the period during the moratorium, the same shall be refunded and to be adjusted/given credit in the next instalment of the loan account. (WP (C) 476 of 2020 dated March 23, 2021)