RBI’s circulars granting moratorium on payment of instalment of term loans, not applicable to mutual funds and debentures – Bombay High Court The Hon’ble High Court of Bombay vide order dated 13.07.2020 held that the circulars furnished by the Reserve Bank of India on 27.03.2020 and 23.05.2020 granting moratorium on payment of instalment of term loans for three months and extending the moratorium on such payments respectively were not applicable to mutual funds and debentures. The division bench comprising of Justices V.J Bisht and R.D Dhanuka held that the present petition was not maintainable against the Respondent and stated as follows, ““The entire Petition is based on the reliance placed on the moratoriums dated 27th March, 2020 and 23rd May, 2020 issued by Reserve Bank of India. A perusal of the said circular clearly indicates that it applies to all Commercial Banks, all Primary (Urban) Co-operative Banks, States Co-operative Banks, District Central Cooperative Banks, All India Financial Institutions, All Non-Banking Financial Companies and also deals with terms loans and working capital facilities provided by those entities. It is clearly beyond reasonable doubt that those two circulars would not apply in case of mutual funds and debentures. Reddy and Reddy Law Firm Pune comprises of a team of lawyers specialised in handling matters related to Company Law, Banking Law and all other corporate matters.