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2021 Supreme(Online)(MAD) 40546
IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 04.10.2021 CORAM THE HONOURABLE MR. JUSTICE R. MAHADEVAN Writ Petition Nos. 13614, 13852, 13865, 13874, 13970, 13984, 14188, 14412, 14841, 14961, 14964, 15086, 15157, 20539, 20895, 21284, 21289 and 21332 of 2021 ---
WP No. 13614 of 2021 K. Ramasamy .. Petitioner Versus
1. Union of India rep. by General Manager Reserve Bank of India Fort Glacis, Kamarajar Salai Chennai - 600 001
2. The Banking Ombudsman C/o. Reserve Bank of India (Banking Office)
Fort Glacis, Kamarajar Salai Chennai - 600 001
3. The Nodal Officer Yes Bank Limited Ground Floor No.143/1, Uttamar Gandhi Salai Nungambakkam, Chennai - 600 034
4. The Manager Yes Bank Limited Kodambakkam Branch No.4/12, Third Cross Street Third Street, Trustpuram Chennai - 600 034 .. Respondents WP No. 13852 of 2021 G. Gopalan .. Petitioner Versus
1. Union of India Rep. by General Manager Reserve Bank of India Fort Glacis Kamarajar Salai Chennai - 600001.
2. The Honourable Ombudsman (NBFC)
C/o.Reserve Bank of India Fort Glacis, Rajaji Salai, Chennai 600001. 3. The Principal Nodal officer Bajaj Finance Limited Unit No 209 and 210, 2nd Floor Alpha Wing, Beta Wing Raheja Towers, No. 177, Anna Salai, Chennai 600 002
4. The Manager Bajaj Finserv
3rd Floor, Kaba Plaza No. 27, LB Road, Indra Nagar, Adyar Bus Depot, Adyar Chennai 600 020 .. Respondents WP No. 13865 of 2021 C. Sathishkumar .. Petitioner Versus
1. Union of India Rep. by General Manager Reserve Bank of India Fort Glacis Kamarajar Salai Chennai - 600001.
2. The Honourable Ombudsman C/o.Reserve Bank of India (Banking Office)
Fort Glacis, Rajaji Salai Chennai 600001.
3. The Nodal Officer HDFC Bank Limited Prime Kushal Towers First Floor, "A" Wing
96, Anna Salai Chennai - 600 002
4. The Manager No.759, ITC Centre Anna Salai Chennai - 600 002 .. Respondents WP No. 13874 of 2021 K. Ramasamy .. Petitioner Versus
1. Union of India Rep. by General Manager Reserve Bank of India Fort Glacis, Kamarajar Salai Chennai - 600001.
2. The Honourable Ombudsman C/o.Reserve Bank of India (Banking Office)
Fort Glacis, Rajaji Salai Chennai 600001.
3. The Principal Nodal Officer RBL Bank Limited JMD Megapolls Unit No.306-311, 3rd Floor Sehna Road, Sector-48 Gurugram, Haryana-122 018.
4. The Manager RBL Bank Limited Credit Card Division Ground Floor, Nibav Building No.11, LB Road, Adyar, Chennai-600 020. .. Respondents WP No. 13970 of 2021 C. Sathishkumar .. Petitioner Versus
1. Union of India Rep. by General Manager Reserve Bank of India Fort Glacis, Kamarajar Salai Chennai - 600001.
2. The Banking Ombudsman C/o. Reserve Bank of India Fort Glacis, Rajaji Salai Chennai 600001.
3. The Nodal Officer HDFC Bank Limited Prime Kushal Towers First Floor, A Wing
96, Anna Salai Chennai - 600 002
4. The Manager HDFC Bank Limited No.759, ITC Centre Anna Salai Chennai - 600 002 .. Respondents WP No. 13984 of 2021 C. Sathishkumar .. Petitioner Versus
1. Union of India Rep. by General Manager Reserve Bank of India Fort Glacis, Kamarajar Salai Chennai - 600001.
2. The Banking Ombudsman C/o. Reserve Bank of India Fort Glacis, Kamarajar Salai Chennai 600001.
3. The Nodal Officer Yes Bank Limited Ground Floor No.143/1, Uttamar Gandhi Nagar Nungambakkam Chennai - 600 034
4. The Manager Yes Bank Limited Kodambakkam Branch No.4/12, Third Cross Street Third Street, Trustpuram Chennai - 600 024 .. Respondents WP No. 14188 of 2021 C. Sathishkumar .. Petitioner Versus
1. Union of India Rep. by General Manager Reserve Bank of India Fort Glacis, Kamarajar Salai Chennai - 600001.
2. The Banking Ombudsman C/o. Reserve Bank of India Fort Glacis, Kamarajar Salai Chennai 600001.
3. The Principal Nodal Officer Bajaj Finance Limited Unit No 209 and 210, 2nd Floor Alpha Wing, Beta Wing Raheja Towers, No. 177, Anna Salai, Chennai 600 002
4. The Manager Bajaj Finserv
3rd Floor, Kaba Plaza No. 27, LB Road, Indra Nagar, Adyar Bus Depot, Adyar Chennai 600 020 .. Respondents WP No. 14412 of 2021 C. Sathishkumar .. Petitioner Versus
1. Union of India Rep. by General Manager Reserve Bank of India Fort Glacis, Kamarajar Salai Chennai - 600001.
2. The Banking Ombudsman C/o. Reserve Bank of India Fort Glacis, Kamarajar Salai Chennai 600001.
3. The Nodal Officer Axis Bank Limited Chennai Circle Office
2nd Floor, No.3, Club House Road Chennai - 600 002
4. The Manager Axis Bank Limited
82, Aalim Centre Dr. Radhakrishnan Salai Mylapore, Chennai - 600 004 .. Respondents WP No. 14841 of 2021 K. Ramasamy .. Petitioner Versus
1. Union of India Rep. by General Manager Reserve Bank of India Fort Glacis, Kamarajar Salai Chennai - 600001.
2. The Banking Ombudsman C/o. Reserve Bank of India (Banking Office)
Fort Glacis, Kamarajar Salai Chennai 600001.
3. The Nodal Officer SBI Card, P.O. Bag No.28 GPO New Delhi - 110 001
4. The President Collections SBI Cards and Payment Service Private Limited
10th Floor, TVH Agnito Park Rajiv Gandhi Salai Kandanchavadi Chennai - 600 096 .. Respondents WP No. 14961 of 2021 C. Sathish Kumar .. Petitioner Versus
1. Union of India Rep. by General Manager Reserve Bank of India Fort Glacis, Kamarajar Salai Chennai - 600001.
2. The Honourable Ombudsman C/o.Reserve Bank of India (Banking Office)
Fort Glacis, Kamarajar Salai Chennai 600001.
3. The Principal Nodal Officer RBL Bank Limited JMD Megapolls Unit No.306-311, 3rd Floor Sehna Road, Sector-48 Gurugram, Haryana-122 018.
4. The Manager RBL Bank Limited Credit Card Division Ground Floor, Nibav Building No.11, LB Road, Adyar, Chennai-600 020. .. Respondents WP No. 14964 of 2021 A. Santhanakrishnan .. Petitioner Versus
1. Union of India Rep. by General Manager Reserve Bank of India Fort Glacis, Kamarajar Salai Chennai - 600001.
2. The Honourable Ombudsman C/o.Reserve Bank of India (Banking Office)
Fort Glacis, Kamarajar Salai Chennai 600001.
3. The Principal Nodal Officer Axis Bank Limited Circle Office-II, Floor No.3 Club House Road Chennai - 600 002
4. The Manager Axis Bank Limited No.6-A, Second Floor Centennial Square Dr. Ambedkar Road Kodambakkam Chennai- 600 024. .. Respondents WP No. 15086 of 2021 L. Yogesh .. Petitioner Versus
1. Union of India Rep. by General Manager Reserve Bank of India Fort Glacis, Kamarajar Salai Chennai - 600001.
2. The Banking Ombudsman C/o. Reserve Bank of India Fort Glacis, Kamarajar Salai Chennai 600001.
3. The Principal Nodal Officer Dhana Nidhi Limited NRD Tower, No.11, Old No.54
1st Avenue, Jawaharlal Nehru Road Ashok Nagar Chennai - 600 083
4. The Manager Dhana Nidhi Limited NRD Tower, No.11, Old No.54
1st Avenue, Jawaharlal Nehru Road Ashok Nagar Chennai - 600 083 .. Respondents WP No. 15157 of 2021 V. Venkatesan .. Petitioner Versus
1. Union of India Rep. by General Manager Reserve Bank of India Fort Glacis, Kamarajar Salai Chennai - 600001.
2. National Housing Bank Department of Regulation and Supervision (Complaint Redress Cell)
4th Floor, Core-5A, India Habital Centre Lodhi Road New Delhi - 110 003
3. The Honourable Ombudsman (NBFC)
C/o. Reserve Bank of India Fort Glacis Chennai - 600 001
4. The Principal Nodal Officer Magma Housing Finance Limited Development House
24, Park Street Kolkatta - 700 016
5. The Manager Magma Housing Finance No.17/19, B Block, 3rd Floor Navin's Presidium Nelson Manickam Road Chennai - 600 029 .. Respondents WP No. 20539 of 2021 P. Santhanaraj .. Petitioner Versus
1. Union of India Rep. by General Manager Reserve Bank of India Fort Glacis, Kamarajar Salai Chennai - 600001.
2. The Banking Ombudsman (Banking Office)
C/o. Reserve Bank of India Fort Glacis, Kamarajar Salai Chennai 600001.
3. The Principal Nodal Officer ICICI Bank Limited Bandra Kurla Complex Bandra East Mumbai - 400 051
4. The Manager ICICI Bank Limited Ground Floor, Lion Arcade No.1-A, Sindupoondurai West Street Madurai Road Tirunelveli - 627 001 .. Respondents WP No. 20895 of 2021 L. Yogesh .. Petitioner Versus
1. Union of India Rep. by General Manager Reserve Bank of India Fort Glacis, Kamarajar Salai Chennai - 600001.
2. The Banking Ombudsman C/o. Reserve Bank of India Fort Glacis, Kamarajar Salai Chennai 600001.
3. The Principal Nodal Officer Shriram City Union Finance Limited Business Solution Centre
144, Santhome High Road Mylapore, Chennai - 600 004
4. The Manager Shriram City Union Finance Limited No.6, Sorrento Buildings 2nd Floor Lattice Bridge Road Adyar, Chennai - 600 020 .. Respondents WP No. 21284 of 2021 S. Ilakkia .. Petitioner Versus
1. The Honourable Ombudsman C/o. Reserve Bank of India Fort Glacis Chennai 600001.
2. The Principal Nodal Officer Axis Bank Private Limited Circle Office-II, Floor No.3 Club House Road Chennai - 600 002
3. The Manager Axis Bank Private Limited Kodambakkam Branch
2/19, 5th Cross Street United India Colony Kodambakkam, Chennai - 600 024 .. Respondents WP No. 21289 of 2021 G. Venkatesh .. Petitioner Versus
1. Union of India rep. by General Manager Reserve Bank of India Fort Glacis, Kamarajar Salai Chennai - 600 001.
2. The Banking Ombudsman C/o. Reserve Bank of India Fort Glacis, Kamarajar Salai Chennai - 600 001.
3. The Principal Nodal Officer Aditya Birla Finance Limited "Star Avenue"
No.1 (78), 1st Floor, 6th Cross Street Victoria Layout, Victoria Road Bengaluru - 560 025
4. The Manager Aditya Birla Finance Limited M/7, Thiru.vi.Ka Industrial Estate Guindy Chennai - 600 032 .. Respondents WP No. 21332 of 2021 S. Sathiya .. Petitioner Versus
1. Union of India rep. by General Manager Reserve Bank of India Fort Glacis, Kamarajar Salai Chennai - 600 001.
2. The Banking Ombudsman C/o. Reserve Bank of India Fort Glacis, Kamarajar Salai Chennai - 600 001.
3. The Principal Nodal Officer Bajaj Finance Limited Unit No 209 and 210, 2nd Floor Alpha Wing, Beta Wing Raheja Towers, No. 177, Anna Salai, Chennai 600 002
4. The Manager Bajaj Finserv Unit No 804, 805, 8th Floor No.177, Delta Wing Raheja Towers, Anna Salai, Chennai 600 002 .. Respondents WP No. 13614 of 2021:- Petition filed under Article 226 of the Constitution of India, praying for issuance of a Writ of Mandamus directing the second and third respondents to take action against the fourth respondent to follow the due process of law, regarding collection of loan amount, as guided by Reserve Bank of India forthwith by considering petitioner's complaint dated 23.02.2021.
WP No. 13852 of 2021:- Petition filed under Article 226 of the Constitution of India, praying for issuance of a Writ of Mandamus directing the second respondent to take action against the fourth respondent to follow the due process of law, regarding collection of loan amount, as guided by Reserve Bank of India forthwith by considering petitioner's complaint dated
08.06.2021.
WP No. 13865 of 2021:- Petition filed under Article 226 of the Constitution of India, praying for issuance of a Writ of Mandamus directing the second and third respondents to take action against the fourth respondent to follow the due process of law, regarding collection of loan amount, as guided by Reserve Bank of India forthwith by considering petitioner's complaint dated 19.06.2021.
WP No. 13874 of 2021:- Petition filed under Article 226 of the Constitution of India, praying for issuance of a Writ of Mandamus directing the second and third respondents to take action against the fourth respondent to follow the due process of law, regarding collection of loan amount, as guided by Reserve Bank of India forthwith by considering petitioner's complaint dated 08.06.2021.
WP No. 13970 of 2021:- Petition filed under Article 226 of the Constitution of India, praying for issuance of a Writ of Mandamus directing the second and third respondents to take action against the fourth respondent to follow the due process of law, regarding collection of loan amount, as guided by Reserve Bank of India forthwith by considering petitioner's complaint dated 19.06.2021.
WP No. 13984 of 2021:- Petition filed under Article 226 of the Constitution of India, praying for issuance of a Writ of Mandamus directing the second and third respondents to take action against the fourth respondent to follow the due process of law, regarding collection of loan amount, as guided by Reserve Bank of India forthwith by considering petitioner's complaint dated 19.06.2021.
WP No. 14188 of 2021:- Petition filed under Article 226 of the Constitution of India, praying for issuance of a Writ of Mandamus directing the second respondent to take action against the fourth respondent to follow the due process of law, regarding collection of loan amount, as guided by Reserve Bank of India forthwith by considering petitioner's complaint dated
11.06.2021.
WP No. 14412 of 2021:- Petition filed under Article 226 of the Constitution of India, praying for issuance of a Writ of Mandamus directing the second and third respondents to take action against the fourth respondent to follow the due process of law, regarding collection of loan amount, as guided by Reserve Bank of India forthwith by considering petitioner's complaint dated 19.06.2021.
WP No. 14841 of 2021:- Petition filed under Article 226 of the Constitution of India, praying for issuance of a Writ of Mandamus directing the second respondent to take action against the fourth respondent to follow the due process of law, regarding collection of loan amount, as guided by Reserve Bank of India forthwith by considering petitioner's complaint dated
11.06.2021.
WP No. 14961 of 2021:- Petition filed under Article 226 of the Constitution of India, praying for issuance of a Writ of Mandamus directing the second and third respondents to take action against the fourth respondent to follow the due process of law, regarding collection of loan amount, as guided by Reserve Bank of India forthwith by considering petitioner's complaint dated 17.06.2021.
WP No. 14964 of 2021:- Petition filed under Article 226 of the Constitution of India, praying for issuance of a Writ of Mandamus directing the second and third respondents to take action against the fourth respondent to follow the due process of law, regarding collection of loan amount, as guided by Reserve Bank of India forthwith by considering petitioner's complaint dated 18.06.2021.
WP No. 15086 of 2021:- Petition filed under Article 226 of the Constitution of India, praying for issuance of a Writ of Mandamus directing the second and third respondents to take action against the fourth respondent to follow the due process of law, regarding collection of loan amount, as guided by Reserve Bank of India forthwith by considering petitioner's complaint dated 19.04.2021.
WP No. 15157 of 2021:- Petition filed under Article 226 of the Constitution of India, praying for issuance of a Writ of Mandamus directing the second and third respondents to take action against the fifth respondent to follow the due process of law, regarding collection of loan amount, as guided by Reserve Bank of India forthwith by considering petitioner's complaint dated
26.06.2021.
WP No. 20539 of 2021:- Petition filed under Article 226 of the Constitution of India, praying for issuance of a Writ of Mandamus directing the second respondent to take action against the fourth respondent to follow the due process of law, regarding collection of loan amount, as guided by Reserve Bank of India forthwith by considering petitioner's complaint dated
02.09.2021.
WP No. 20895 of 2021:- Petition filed under Article 226 of the Constitution of India, praying for issuance of a Writ of Mandamus directing the second respondent to take action against the third and fourth respondents to follow the due process of law, regarding collection of loan amount, as guided by Reserve Bank of India forthwith by considering petitioner's complaint dated 19.04.2021.
WP No. 21284 of 2021:- Petition filed under Article 226 of the Constitution of India, praying for issuance of a Writ of Mandamus directing the first respondent to take action against the third respondent to follow the due process of law, regarding collection of loan amount, as guided by Reserve Bank of India forthwith by considering petitioner's complaint dated
07.09.2021.
WP No. 21289 of 2021:- Petition filed under Article 226 of the Constitution of India, praying for issuance of a Writ of Mandamus directing the second respondent to take action against the fourth respondent to follow the due process of law, regarding collection of loan amount, as guided by Reserve Bank of India forthwith by considering petitioner's complaint dated
02.09.2021.
WP No. 21332 of 2021:- Petition filed under Article 226 of the Constitution of India, praying for issuance of a Writ of Mandamus directing the second respondent to take action against the fourth respondent to follow the due process of law, regarding collection of loan amount, as guided by Reserve Bank of India forthwith by considering petitioner's complaint dated
19.08.2021.
For Petitioner : Mr. M. Govindarajan For Respondents : Mr. Shivakumar for R4 WP No. 13852 of 2021 For Petitioner : Mr. M. Govindarajan For Respondents : Mr. Arunachalam for RR3 & 4 WP No. 13865 of 2021 For Petitioner : Mr. M. Govindarajan For Respondents : Mr. S. Krishnan for RR3 and 4 WP No. 13874 of 2021 For Petitioner : Mr. M. Govindarajan For Respondents : Mr. M. Arunachalam for R4 WP No. 13970 of 2021 For Petitioner : Mr. M. Govindarajan For Respondents : Mr. S. Krishnan for RR3 & 4 WP No. 13984 of 2021 For Petitioner : Mr. M. Govindarajan For Respondents : Mr. Shivakumar for R4 WP No. 14188 of 2021 For Petitioner : Mr. M. Govindarajan For Respondents : Mr. M. Arunachalam for RR3 & 4 WP No. 14412 of 2021 For Petitioner : Mr. M. Govindarajan For Respondents : Mr. R. Sreedhar for R4 WP No. 14841 of 2021 For Petitioner : Mr. M. Govindarajan For Respondents : Mr. S. Sethuraman for R4 WP No. 14961 of 2021 For Petitioner : Mr. M. Govindarajan For Respondents : Mr. M. Arunachalam for R4 WP No. 14964 of 2021 For Petitioner : Mr. M. Govindarajan For Respondents : Mr. R. Sreedhar for R4 WP No. 15086 of 2021 For Petitioner : Mr. M. Govindarajan WP No. 15157 of 2021 For Petitioner : Mr. M. Govindarajan WP No. 20539 of 2021 For Petitioner : Mr. M. Govindarajan WP No. 20895 of 2021 For Petitioner : Mr. M. Govindarajan WP No. 21284 of 2021 For Petitioner : Mr. M. Govindarajan WP No. 21289 of 2021 For Petitioner : Mr. M. Govindarajan WP No. 21332 of 2021 For Petitioner : Mr. M. Govindarajan
COMMON ORDER
In all these writ petitions, the prayer sought for is to issue a Writ of Mandamus directing the second respondent to take action against the banks or financial institutions which have lent money to the respective petitioner, to follow the due process of law, regarding collection of loan amount, as guided by Reserve Bank of India forthwith based on their complaints.
2. The petitioners in these writ petitions have availed credit card/
term loan or housing loan facility from the respective bank. According to the petitioners, they have repaid the amount periodically, however, owing to pandemic situation, they could not pay the loan amount. Notwithstanding the adverse financial situation faced by the petitioners, the recovery personnel attached to the lending banks / financial institutions frequently called upon them and demanded the repayment of the entire balance amount by slapping exorbitant interest. Unable to sustain the frequent threats unleashed by the recovery agents appointed by the lending banks/financial institutions to collect the loan amount, the petitioners have given complaints to the Banking Ombudsman seeking to take appropriate action against the lending banks/ financial institutions for the unfair and unreasonable practice adopted in the matter of recovering the loan amount through threat and coercion. According to the petitioners, the complaints given by them have not been considered so far and therefore, they have filed these writ petitions.
3. The learned counsel for the petitioners submit that the Honourable Supreme Court, time and again, held that private banks should not resort to collect the borrowed amount by adopting third degree methods and such a practice has been deprecated. To substantiate such contention, he placed reliance on the order dated 26.02.2007 passed by the Honourable Supreme Court in Appeal (Crl) No. 267 of 2007 in the case of (Manager, ICICI Bank Limited vs. Prakash Kaur and others) wherein it was held that Banks have to be held vicariously liable for such acts of the agents engaged by them and that the recovery of loan or vehicles has to be done only through legal means and Banks cannot employ goondas to take possession by force. In the present case, according to the counsel for the petitioners, the lending banks/ financial institutions engaged goondas and hooligans to collect the loan amount from the petitioners without following the due process of law and therefore, the petitioners have been constrained to give a complaint to the Banking Ombudsman. However, no action has been taken on the complaints given by the petitioners, hence, the learned counsel for the petitioners prayed this Court to issue appropriate direction to the lending banks/financial institutions to recover the loan amount only by adopting due process of law.
4. The learned counsel appearing for the respective banks/ financial institutions vehemently contend that the banks/financial institutions have not adopted any such unlawful method in collecting the loan amount. The petitioners, having availed the term loan/credit card facility or housing loan have failed to repay the loan amount. The loan amount was directed to be repaid by the bank in a lawful manner and the question of exerting pressure towards the petitioners through third degree method does not arise. The petitioners have availed huge amount and committed default in payment of loan amount. When the petitioners committed default in payment of the loan amount, the lending banks/financial institutions lawfully demanded the repayment of the loan amount. However, the petitioners have raised various allegations as against the lending banks/financial institutions in the matter of collection of the loan amount. It is vehemently contended by the counsel for the lending banks/financial institutions that the present attempt on the part of the petitioners, in filing these writ petitions, is to throttle the legitimate process initiated by the lending banks/financ
