Kerala High Court Stands with Wayanad Landslide Victims; Banks Ordered to Halt Loan Recoveries
Union Government's Refusal to Waive Loans Criticized; Court Upholds Fundamental Right to Life
In a significant ruling, the Kerala High Court has intervened on behalf of landslide victims in Wayanad, directing banks to halt recovery actions on loans pending further resolution. This decision comes as a response to the Union Government's refusal to waive loans for the victims, a stance the court deemed an affront to the victims' dignity and fundamental right to life as enshrined under Article 21 of the Constitution of India.
The case, titled "In Re: Prevention and Management Of Natural Disasters In Kerala v. State of Kerala," was presided over by Justices Dr. A.K. Jayasankaran Nambiar and Jobin Sebastian. The court expressed disappointment at the Union Government's affidavit, which cited Reserve Bank of India (RBI) guidelines that do not provide for loan waivers and emphasized the independence of banks in making commercial decisions.
Despite acknowledging the separation of powers and refraining from directing the Union Government on economic policy matters, the bench made it clear that the dignity of the victims, having lost their homes and means of livelihood in the landslide, was at stake. The court underscored that the refusal to waive loans violated the fundamental rights of the victims, further highlighting the Union Government’s decision to provide Rs.707 crore in aid to other states affected by similar disasters.
The Kerala High Court has impleaded several banks, including the Bank of Baroda and State Bank of India, among others, as additional respondents. It ordered these banks to suspend recovery actions against the Wayanad landslide victims until the writ petition is resolved. The court also invited the banks to consider waiving the loans and to justify any demands for repayment during this period.
This ruling highlights the court's commitment to upholding the constitutional rights of citizens, ensuring that the victims' struggles are not exacerbated by financial burdens. The court's decision is a pivotal step in reinforcing the fundamental right to life and dignity for disaster-stricken individuals.
Bottom Line:
Relief measures for victims of natural calamities - The Union Government's refusal to waive loans for landslide victims in Wayanad, Kerala, is viewed as an affront to their dignity and fundamental right to life under Article 21 of the Constitution.
Statutory provision(s): Article 21 of the Constitution of India
