Balaji Traders Vs the Union. of India — Writ and Judicial Review | Telangana HC (2025)

Balaji Traders Vs the Union. of India — Writ and Judicial Review | Telangana HC (2025)

What the court decided

AI extract

Outcome

Writ petition disposed of in terms of the order in W.P.No.5200 of 2024 dated 25.04.2024: respondent authorities and their agents directed to scrupulously follow the RBI guidelines/instructions in its Circular dated 12.08.2022 and the Supreme Court judgments in ICICI Bank Ltd. v. Prakash Kaur and ICICI Bank v. Shanti Devi Sharma while recovering loan amounts from the petitioner; pending miscellaneous applications closed; no costs.

Issue for consideration

Whether the actions of Respondent Nos. 3 to 19 in sending recovery agents to the petitioner's residence and threatening her with dire consequences for non-repayment of loans are illegal, arbitrary and violative of Articles 14, 19 and 21 of the Constitution of India, and whether the respondents must follow RBI guidelines and Supreme Court judgments while recovering loan amounts.

Court's answer

The issue raised in the writ petition being covered by this Court's order in W.P.No.5200 of 2024 dated 25.04.2024, and counsel for respondent Nos. 1, 2, 3, 4, 7, 8, 9, 10, 13, 17, 18 and 19 having no objection, the writ petition is disposed of in terms of that order and for the reasons alike.

Ratio / Principle

The respondent authorities and their agents are directed to scrupulously follow the guidelines/instructions issued by the Reserve Bank of India in its Circular dated 12.08.2022 and the judgments of the Hon'ble Supreme Court in ICICI Bank Ltd. v. Prakash Kaur and ICICI Bank v. Shanti Devi Sharma while recovering the loan amounts from the petitioner.

Key takeaways

Pending miscellaneous applications, if any, shall stand closed, and there shall be no costs.ratio¶53

Detailed headnote1 paragraphs

High Court for the State of Telangana (Nagesh Bheemapaka, J.), in W.P. No. 14372 of 2025 (decided 10.11.2025): A trader-petitioner alleged that recovery agents engaged by private banks and NBFCs (Respondent Nos. 3 to 19, including HDFC Bank, IndusInd Bank, IDFC First Bank, SBI, SBI Cards, ICICI Bank, Yes Bank, Axis Bank, SMFG India Credit, Godrej Finance, Poonawalla Fincorp, Unity Small Finance Bank, Clix Capital, NeoGrowth Credit, Indian Bank, Bajaj Finserv and Mahindra Finance) were visiting her residence and threatening her over non-repayment of loans, and sought a mandamus to restrain such acts and to enforce RBI guidelines. Holding the issue squarely covered by its earlier order in W.P.No.5200 of 2024 dated 25.04.2024, and with no objection from counsel for respondent Nos. 1, 2, 3, 4, 7, 8, 9, 10, 13, 17, 18 and 19, the Court disposed of the writ petition in like terms, directing the respondent authorities and their agents to scrupulously follow the RBI guidelines/instructions in its Circular dated 12.08.2022 and the Supreme Court decisions in ICICI Bank Ltd. v. Prakash Kaur, (2007) 2 SCC 711, and ICICI Bank v. Shanti Devi Sharma, (2008) 7 SCC 532, while recovering loan amounts from the petitioner. Pending miscellaneous applications closed; no costs.

[³³⁰⁰ I

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD

(Special Original Jurisdiction)

MONDAY, THE TENTH DAY OF NOVEMBER TWO THOUSAND AND TWENry FIVE

PRESENT

THE HONOURABLE SRI JUSTICE NAGESH BHEEMAPAKA

WRIT PETITION NO: 14372 OF 2025

Between:

BALAJI TRADERS, REP. BY ITS PROPRIETOR DEVARESHATY VIJAY SRI, W/O. D VIJAY BHASKAR, AGED 41 YEARS, OCC. BUSINESS, RYO. PLOT NO. 116, SAI NAGAR COLONY, KUSHAIGUDA, MEDCHAL MALKAJGIRI, TELANGANA500062.

.....PETITIONER

AND

THE UNION OF INDIA, REP. BY SECRETARY, MINISTRY OF FTNANCE

THE RESERVE BANK OF INDIA REP. BY ITS CHIEF GENERAL MANAGER 6-1-56, SECRETARIAT ROAD, SAIFABAD, KHAIRATABAD, HYDERABAD, TELANGANA-5OOOO4

HDFC BANK, REP. BY ITS AUTHORIZED SIGNATORY HDFC HOUSE, H T PAREKH MARL, 165-166, BACKBAY RECLAMATION, CHURCHGATE, MUMBAT- 400020

INDUSIND BANK, REP. BY ITS AUTHORIZED SIGNATORY CORPORATE OFFICE, 2-57, ROAD NO.17, MIDC, INDUSTRIAL ESTATE, MAROL, ANDHERI EAST, MUMBAI, MAHARASHTRA - PINE CODE. 4OO 057.

IDFC FIRST BANK, REP. BY ITS AUTHORIZED SIGN;TORY THE SQUARE, C-61, G BLOCK, GROUND FLOOR TO 8TH FLOOR, BANDRA KURLA COMPLEX, BANDRA EAST, MUMBAI, MAHARASTRA - 4OOO 51.

THE RESERVE BANK OF INDIA, REP. BY ITS CHIEF GENERAL MANAGER 6-1 -56, SECRETARIAT ROAD, SAIFABAD, KHAIRATABAD, HYDERABAD, TELANGANA-sOOOO4.

HDFC BANK, REP. BY ITS AUTHORIZED SIGNATORY HDFC HOUSE, H T PAREKH MARL, 165.166, BACKBAY RECLAMATION, CHURCHGATE, MUMBAT- 400020.

INDUSIND BANK, REP. BY ITS AUTHORIZED SIGNATORY CORPORATE OFFICE, 2-57, ROAD NO.17, MIDC, INDUSTRIAL ESTATE, NTAROL, ANDHERI EAST, MUMBAI, MAHARASHTRA - PINE CODE. 4OO O57

IDFC FIRST BANK, REP. BY ITS^{AUTHORIZED SIGNATORY THE} SQUARE, C-61, G BLOCK, GROUND^{FLOOR TO BTH FLOOR, BANDRA} KURLA COMPLEX, BANDRA EAST,^{IVIUMBAI,MAHARASTRA - 4OOO 51.}

lO.STATE BANK OF INDIA, REP. BY ITS MANAGER^{SBI LHO; BANK STREET,} OPP. ENT HOSPITAL, SULTAN BAZAR,^{KOTI, HYDERABAD,} TELANGANA-500096.

1 1 . SBI CARDS, REP. BY ITS MANAGER^DLF CYBER^{CITY, TOWERC,} BLOCK-2, BUILDING 3, DLF INFINITY^{TOWERS, 12TH FLOOR,} GURUGRAM-122002,

12.ICICI BANK LIMITED., REP. BY ITS MANAGER ICICI BANKTOWER,^NEAR CHAKLI CIRCLE, OLD PADRA ROAD, VADODARA.3gOOO7.

YES BANK LIMITED., REP. BY ITS MANAGER YES BANK HOUSE, WESTERN EXPRESS HIGHWAY, ANAND NAGAR, VAKOLA, SANTACRUZ EAST, MUMBAI, MAHARASHTRA 4OOO55.

14.AXIS BANK LIMITED., REP. BY ITS AUTHORIZED SIGNATORY AXIS HOUSE, C-2, WADIA INTERNATIONAL.

SMFG INDIA CREDIT CO. LIMITEDPITAL SERVICES PRIVATE LIMITED, REP. BY ITS MANAGER COMMERZONE IT PARK, TOWER B, 1ST FLOOR, NO. 111, MOUNT POONAMALEE ROAD, PORUR, CHENNAI. 600116.

16.GODREJ FINANCE LIMITED, REP. BY ITS MANAGER, GODREJ ONE, EASTERN EXPRESS HIGHWAY, VIKHROLI EAST, MUMBAI- 4OOO79.

POONAWALLA FINCORP LIMITED, REP. BY ITS MANAGER 201 , KOREGOAN PARK ANNEX, MUNDHWA, PUNE.41 1036.

18.UNITY SMALL FINANCE BANK, REP. BY ITS MANAGER CENTRUM HOUSE, CST ROAD, KALINA, SANTACRUZ EAST, MUMBAI- 4OOO9B.

19.CLIX CAPITAL SERVICES PRIVATE LIMITED, REP. BY ITS MANAGER 901,^gTH FLOOR, TWO HORIZON CENTRE, DLF PHASE V, GURUGRAM122002.

20.NEOGROWTH CREDIT PRIVATE LIMITED, REP. BY ITS MANAGER TIMES SQUARE, TOWER E,^gTH FLOOR, ANDHE.RI KURLA ROAD, MAROL, ANDHERI EAST, MUMBAI-400059.

21.INDIAN BANK, REP. BY tTS MANAGER H.NO. 4-105812, EAST GANDHI NAGAR, NAGARAM, HYDERABAD.

22.BAJAJ FINSERV, REP. BY ITS MANAGER 4TH FLOOR, BAJAJ FINSERV CORPORATE OFFICE, VIMAN NAGAR, PUNE.41 1014 I9.MAHINDRA FINANCE REP. BY ITS MANAGER 1ST FLOOR, W TOWERS, TRIMULGHERRY ROAD, KARKHANA SECUNDERABAD^. 5OOOO9

MAHINDRA FINANCE, REP. BY ITS MANAGER 1ST FLOOR, W TOWERS, TRIMULGHERRY ROAD, KARKHANA, SECUNDERABAD 5OOOO9.

.....RESPONDENTS

Petition Under Article 226 of the Constitution of lndia^praying that in the circumstances stated in the affidavit filed therewith, the High Court may be

pleased to issue a Writ, Order, or: Direction, more particularly one in the nature of a Writ of Mandamus, declaring the actions of Respondent Nos. 3 to 19 in sending recovery agents to the residence of the Petitioner and threatening her with dire consequences for non-repayment of loans as illegal, arbitrary, and violative of Artictes 14, 19, and 21 of the Constitution of lndia and consequenfly direct Respondent Nos.3 to 19 to forthwith cease such acts and stricfly follow the procedure established by law for recovery of any amounts that may be due and further direct Respondent Nos. 1 and 2 to initiate appropriate action against Respondent Nos. 3 to 19 for violating the guidelines of the Reserve Bank of lndia and the law laid down by this Hon'ble Court in lClcl Bank Ltd. v. prakash Kaur and Ors.

l.A.NO:1 oF 202s

Petition Under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to direct the Respondents No. 3 to 19 to forthwith stop sending recovery agents to the Petitioner's residence.

counsel for the Petitioner : SMT KANKANALA SUMALATHA counsel for the Respondent No.l : sRl N.BHUJANGA RAo, DEpury SOLICITOR GENERAL OF TNDIA counsel for the Respondent No.2 : sRl K.RATHANGA pANl REDDY counselfor the Respondent Nos.3 & 9 : sRl N.B.SUDARSHAN counsel for the Respondent No.4 : sRt G.PRAVEEN KUMAR Counset for the Respondent Nos.S & 6 : -

counsel for the Respondent No.7 : sRl M.VIVEKANANDA REDDY Counsel for the Respondent No.8 : SRt M.V.KlNt CO ADVOCefEi SOLTCTTORS Counsel for the Respondent No.10 : DR. M.p.KASHyAp Counsel for the Respondent No.13, 1g & 19 : Ms. K.RAMYA counsel for the Respondent No.17 : sRl K.NIRANJAN REDDY The Court made the following ORDER

, I

THE HON'BLE SRI JI'STICE NAGESH BHEEMAPAKA

WRIT PETITION No.14372 cf 2O2S

OTiTETSTiE

sri Kankanala sumalatha, learned counsel for the petitioner; Sri N.Bhujanga Rao, learned Deputy Solicitor General of India for respondent No.1; Sri K Rathanga Pani Reddy, learned counsel for respondent No.2; Sri N B Sudarshan, learned counsel for respondent Nos.3 & 9; Sri G. praveen Kumar, learned counsel for respondent I'1o.4; Sri lrri. Vivekananda Reddy, learned counsel for respondent No.7; Sri M V Kini Co Advocates Solicitors, learned counsel for respondent No.8; Dr. M.p.Kashyap, learned counsel for respondent irlo.10; Ms. K. Ramya, learned counsel for respondent Nos.13, 18 & 19 and Sri K. Niranjan Reddy, learned counsel for respondent No.17.

When the matter is taken up f:r hearing, learned counsel for petitioner submitted that the issue raised in this Writ petition is squarely covered by the order passed by this Court in W.P.No.520O of 2024, dated , I 25.04.2024 and therefore, the same order may be passed in this writ petition as well. The operative portion of the said order reads as under:

'8For the aforesaid reasons and as the procedure adopted -by the respondent Nos.4 to z for recovery of loan amourtt from the petitioner, amounts to violation of ihe rights guaranteed under Articles 14 and 2l of the Constitutioi of India, this court deems it appropriate to direct the respondents, to ensure that the agenti engaged by them for recovery of the loan amounts, shail "t i"uy iorl0w the q"ldelines and instructions issued by the Reslrve Bank of ' ' India and_also the judgments of trre Honble supreme court in rcrcr Bank Ltd vs. prakash Kaur's case (i supra) and ICICI Bank Vs. Shanti Devi Sharma,s case (2 "rp..j.

2

With the above said direction, the writ petition is disposed of."

Learned counsel for respondent Nos.1, 2, 3, 4, 7, 8, 9, 10, 13, 17,¹⁸ and 19 have no objeclion.

Accordingly, in terms of the order^passed by this Courtⁱⁿ W.P.No.5200 of 2024, {ated 25.O4.2024,^{and, for the reasons alike, this writ} petition is disposed of directing the respondent authorities^{and their agents} to scrupulously follorv the^{guid-clines/instructionsissued by the Reserve} Bank <rf India in its^{Circular dated 12.08.2022and also the judgmentsof} I{on'ble Supreme^{Coui't in ICICI Bank Ltd. v. PrakashKaur'ls case and} ICICI Bank v. Shanti^{Devi Sharma'2s case, rvhile recovering the loan} amounts from the Petit^-ner.

Pending misccllaneous^{applications, if any, shall stand closed}

No costs

1(20 0712 scc 711 2(2008) 7 SCC s32

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SD/. U. SUDHA ASSISTANT RE$ISTRAR //TRUE COPY// (q

SECTION OFFICER

To

E SECRETARY, UNION OF INDIA, MINISTRY OF FINANCE

THE CHIEF GENERAL^MANAGER, THE^RESERVE BANK OF^INDIA 6.1-56, SECRETARIAT^{ROAD, SAIFABAD, KHAIRATABAD, HYDERABAD,} TELANGANA-5OOOO4

THE AUTHORIZED SIGNATORY,^HDFC BANK, HDFC^{HOUSE,H T} PAREKH MARL, 165-166, BACKBAY^RECLAMATION, CHURCHGATE, MUMBAI. 4OOO2O

THE AUTHORIZED SIGNATORY,^{INDUSIND BANK,} CORPORATE OFFICE, 2-57, ROAD NO.17,^{MIDC, INDUSTRIAL ESTATE, MAROL, ANDHERI} EAST. MUMBAI. MAHARASHTRA^- PINE CODE.^4OO 057.

THE AUTHORIZED SIGNATORY, IDFC^{FIRST BANK,THE SQUARE,C-61,} G BLOCK, GROUND FLOOR TO 8TH FLOOR,^{BANDRA KURLA COMPLEX,} BANDRA EAST, MUMBAI, MAHARASTRA^{- 4OOO 51.}

THE MANAGER, STATE BANK OF^{INDIA, SBI LHO, BANK STREET, OPP.} ENT HOSPITAL, SULTAN BAZAR, KOTI, HYDERABAD,^TELANGANA- 500096.

THE MANAGER, SBI CARDS, DLF CYBER^{CIry, TOWER C, BLOCK-2,} BUILDING 3, DLF INFINITY TOWERS,^{12TH FLOOR, GURUGRAM.122OO2.}

THE MANAGER, ICICI BANK LIMITED.,^{ICICI BANKTOWER, NEAR} CHAKLI CIRCLE, OLD PADRA^{ROAD,VADODARA-390007.}

THE MANAGER, YES BANK LIMITED.,^{YES BANK HOUSE, WESTERN} EXPRESS HIGHWAY, ANAND NAGAR,^{VAKOLA, SANTACRUZEAST,} MUMBAI, MAHARASHTRA^4OOO55.

1O.THE AUTHORIZED SIGNATORY, AXIS BANK^{LIMITED., AXIS HOUSE, C-2,} WADIA INTERNATIONAL CENTRE, PANDURANG^BUDHKARMARG, WARLI, MUMBAI, MAHARASTRA -^4OO 025

11.THE MANAGER, SMFG INDIA CREDIT CO.^{LIMITED, COMMERZONEIT} PARK, TOWER B, 1ST FLOOR, NO. 1'I'I, MOUNT POONAMALEE^ROAD, PORUR, CHENNAI- 6001.I6.

12.THE MANAGER, GODREJ FINANCE LIMITED, GODREJ ONE,^EASTERN EXPRESS HIGHWAY, VIKHROLI EAST,^{MUMBAI-4OOO79.}

13.THE MANAGER, POONAWALLA FINCORP LIMITED, 201, KOREGOAN PARK ANNEX, MUNDHWA, PUNE- 41 1036.

14.THE MANAGER, UNITY SMALL FINANCE BANK, CENTRUM^{HOUSE, CST} ROAD, KALINA, SANTACRUZ EAST, MUMBAI-^4OOO98.

15.THE MANAGER, CLIX CAPITAL SERVICES PRIVATE LIMITED, 901,^gTH FLOOR, TWO HO

16.RIZON CENTRE, DLF PHASE^{V, GURUGRAM.122OO2.}

17.THE MANAGER, NEOGROWTH^{CREDIT PRIVATE LIMITED, TIMES} SQUARE, TOWER E,gTH^{FLOOR, ANDHERI KURLA ROAD, MAROL'} ANDHERI EAST,^{MUMBAI.4OOOsg.}

18.THE MANAGER, INDIAN^{BANK, H.NO. 4-1051512,EAST GANDHINAGAR,} NAGARAM, HYDERABAD.

19.THE MANAGER, BAJAJ^{FINSERV,4THFLOOR, BAJAJ FINSERV} CORPORATE OFFICE, VIMAN^{NAGAR,PUNE-41 101419.MAHINDRA} FINANCE 1ST FLOOR, W^{TOWERS, TRIMULGHERRY ROAD, KARKHANA} SECUNDERABAD -^5OOOO9.

20.THE MANAGER, MAHINDRA^{FINANCE, 1ST FLOOR,JV TOWERS'} TRIMULGHERRY ROAD,^{KARKHANA, SECUNDERABAD5OOOO9.}

21 .One CC to SMT KANKANALA^{SUMALATHA, Advocate} [OPUC]

22.One CC to SRI N.BHUJANGA^{RAO, DEPUTY SOLICITOR GENERAL OF} lNDlA, Advocate [OPUC]

23.One CC to SRI K.NIRANJAN^{REDDY,Advocate (OPUC)}

24.One CC to Ms. K.RAMYA,^{Advocate (OPUC)}

25.One CC to DR. M.P.KASHYAP,^{Advocate (OPUC)}

26.One CC to SRI M.V.KlNl CO ADVOCATES^{SOLICITORS, Advocate (OPUC)}

27.One CC to SRI M.VIVEKANANDA REDDY,^{Advocate (OPUC)}

28.One CC to SRI G.PRAVEEN KUMAR, Advocate^(OPUC)

29.One CC to SRI N.B.SUDARSHAN, Advocate^(OPUC)

30.One CC to SRI K.RATHANGA PANI REDDY,^{Advocate (OPUC)}

31.Two CD Copies

SA

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I I

HIGH COURT

DATED i1011112025

ORDER

WP.No.1 4372 of 2025

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DISPOSING OF THE W.P

WITHOUT COSTS

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