THE HON’BLE SRI JUSTICE N.V. SHRAVAN KUMAR

ORDER

Heard Ms.Mukkera Sahithi Sri Kavya, learned counsel for the petitioner, learned Central Government Counsel for respondent No.1, Sri K. Rathangapani Reddy, learned counsel appearing for respondent No.2, Sri Mahesh Kosgi, learned counsel appearing for respondent No.6 and Sri A.V.L. Ram Prasad Varma, learned counsel appearing for respondent Nos.7 to 9. None appeared for respondent Nos.3 to 5. Perused the record.

2. This writ petition is filed seeking following prayer:-

“Writ of mandamus declaring the action of the Respondent Nos.3 to 9 in high handedly, arbitrarily and illegally trying to recover the amounts from the petitioner by not following Circular dated 12/08/2022 vide RBI/202223/ 108 DOR ORG REC 65/21 04 158/202223 issued by Respondent No.2 or any due process of law and the inaction of the Respondent No.2 to legitimately protect the interest of the petitioner by duly enforcing Circular dated 12.08.2022 vide RBI/202223/108 OR ORG REC 65/21 04 158/ 202223 as illegal, arbitrary and unconstitutional for violating Art 14, 19 and 21 of the Constitution of India and consequently direct the Respondent No.2 to duly enforce the Circular dated 12/08/2022 vide RBI/202223/108 DOR ORG REC 65 /21 04 158/20222 to protect the interests of the petitioner against the Respondent Nos.3 to 9 and direct the Respondent No.2 to take stringent action against the errant official of the Respondent Nos.3 to 9 in unlawfully, illegally and arbitrarily taking to recover the amounts from petitioner without following any due process of law.”

3. The brief facts of the case are that the petitioner has availed the loans and credit card facilities offered by respondent Nos.3 to 9 – Banks, utilized the amounts and have been prompt in repaying the same without fail. It is submitted that petitioner has paid the regular installments to respondent Nos.3 to 9 – Banks till October-November, 2024 and thereafter the petitioner could not pay the regular installments due to financial losses and loss of job. It is further submitted that petitioner has requested respondent Nos.3 to 9 – Banks to grant some time to repay the loan and pending bill amounts but respondent Nos.3 to 9 – Banks without following the guidelines issued by Reserve Bank of India has been continuously calling the petitioner 70-80 times per day and also harassing the petitioner by sending loan recovery agents to repay the amounts immediately. Aggrieved by the said action of respondents – Banks, petitioner filed the present Writ Petition.

4. Learned counsel appearing for the petitioner submits that there is no dispute with regard to the loan amounts, which the petitioner has to pay and in view of financial exigency and loss of job, the petitioner could not repay the said amounts. Learned counsel further submitted that the petitioner is searching for a new job and till such time certain time may be granted to the petitioner to work out with the respondent-banks for reaching the settlement to pay the amounts in instalments and pray this Court to direct the respondents not to take any coercive / adverse steps till then and to strictly follow the guidelines issued by the RBI.

5. Learned counsel further submitted that in similar circumstance this Court disposed of W.P.No.18913 of 2024 on 22.08.2024 and has passed the order protecting the petitioners therein and directing the respondents therein to follow the circulars issued by the RBI. Relevant portion of the said order is extracted below:

“8. It is apt and appropriate to extract latest guidelines issued by the Reserve Bank of India on 12.08.2022 with regard to outsourcing of Financial Services –Responsibilities of regulated entities employing Recovery Agents, which reads as follows:

“RBI/2022-23/108 DOR.ORG.REC.65/21.04.158/2022-23 August 12, 2022 Madam/ Sir, Outsourcing of Financial Services - Responsibilities of regulated entities employing Recovery Agents The Reserve Bank of India has from time to time advised r