\\ IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI (Special Original Jurisdiction) THURSDAY, THE TWENTY FOURTH DAY OF APRIL TWO THOUSAND AND TWENTY FIVE 0 fo i!111 PRESENT 'i’i THE HON’BLE SRI JUSTICE SUBBA REDDY SATTI WRIT PETITION NO: 8328 OF 2025 Between: Shaki Suleman, S/o Shake Hussain, Aged about 30 years, Occ: Employee, Residing at D.No.11/5B, Nehru Nagar Tirupati, Tirupati District. ...PETITIONER ^ND 1. The Reserve Bank of India,^^ Represented by its General Manager (Ombudsman) 6 Sansad Marg, New Delhi - 110001 2. Aditya Birla Finance Ltd., Represented by its Chief Manager, Star Avenue, No. 1/78, Karnataka560025. 3. Standard Chartered Bank, Represented by its Chief Manager, Raheja Towers, Mahatma Gandhf Road, Bengaluru, Karnataka560001. ...RESPONDENTS .Sri.^ V ThyagiM.Palanivelu Road Bengaluru Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a writ, order-br direction more particularly one in the nature of a Writ of Mandamus deciaring action of the Respondents No. 2 and 3 in violation of Judgment of Hoh’ble Apex Court in ICICI Bank Ltd. v. V V'( ^ Prakash Kaur (2007) 2 see 711 which held Banks must comply with RB1s Fair Practices Code. Unlawful recovery methods are actionable and Guidelines of 1st Respondent ^s,. illegal, arbitrary and sheer violation of Principles of Natural Justice. lA NO: 1 OF 2025 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 1st Respondent to dispose the representation submitted through mail by the petition on 16.03.2025. Counsel for the Petitioner; SRI O UDAYA KUMAR Counsel for the Respondents: — The Court made the following: ORDER / APHC010145552025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3331] FRIDAY ,THE SECOND DAY OF MAY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE SUBBA REDDY SATTI WRIT PETITION NO: 8328/2025 Between: Shaki Suleman ...PETITIONER AND The Reserve Bank Of India and Others Counsel for the Petitioner: 1.0 UDAYA KUMAR Counsel for the Respondent(S): ...RESPONDENT(S) 1. The Court made the following: :: ORDER :: The above writ petition is filed to declare the action of respondents 2 & 3 in sending the recovery agents, without adhering to the Circular issued by respondent No.1 vide RBI/2022-23/108 DOR.ORG.REC.65/21.04.158/20 22- 23, dated 12.08.2022, illegal and arbitrary. Heard Ms G. Anusha, learned counsel learned counsel for the petitioner. Despite representation on behalf of the respondents. representing Sri O. Uday Kumar, service of notice, there is no SRS.J W.P.No.8328 of 2025 3. Lea rned counsel for the petitioner would submit Personal loan from respondents 2 & 3. Later, the petitioner could ^'^ount, as he lost his job. Respondents 2 & 3 Pientioned ci "Pe. the writ that the petitioner availed a f'epay the the afore agents. He not without adhering to circular, are threatening the petitioner by sending \ private petition. 4 Tu_ ■ It; Lie Apex Court dealing with the identical recovery/collection in ICICI Bank Limited v. Prakash Kaur and issues, where the banks engaged the agents to recover the loans, observed others \ services follows; While of as ^Gfore we pan with this matter, we wish to make it clear that appreciate the do not we procedure adopted by the Bank /, the possession of the vehicle from in removing the writ petitioner. The practice of hiring recovery disco regents, who are musclemen, IS deprecated and needs to be ^'-agect. The Bank Possession should resort to procedure take recognized by law to cases where the borrower may have o1 vehicles i committed to stron 5. Hob'bie °‘hersr directed guidelines i Apex Court in icic Bank v. Shanti Devi Sharma therein to adhere & the petitioners/defendants by the Reserve Bank to the of India. 6. It is Pertinent to extract the guidelin ^^1/2022-23/108 DOR.QRq fodia vide '12.08.2022 es issued by the Reserve Bank of REC.65/21.04.158/2022-23 , dated as under: o^fcing of Financial Service^ . ^^P/oyirjg Recovery Agents Outs l^esponsibilities of regulated entities ^ (2007) 2 see 71 (2008) 7 see 532 1 SRS.J W.P.No.8328 of 2025 The Reserve Bank of India has from time to time advised regulated entitles (REs) that the ultimate responsibility for their outsourced activities vests with them and they are, therefore, responsible for the actions of their service providers including Recovery Agents (hereafter referred to as ‘agents’). 2. It has been observed that the agents employed by REs have been deviating from the extant instructions governing the outsourcing of financial In view of concerns arising from the activities of these agents, it is advised that the REs shall strictly ensure that they or their agents do not resort to intimidation or harassment of any kind, either verbal or physical, against any person in their debt collection efforts, including acts intended to humiliate publicly or Intrude upon the privacy of the debtors' family members, referees and friends, sending Inappropriate messages either on mobile or through social media, making threatening and/ or anonymous calls, persistentlyt calling the borrower and/ or calling the borrower before 8:00 a.m. and after 7:00 p.m. for recovery of overdue loans, making false and misleading representations, etc. services. 3. The instructions contained in para 2 above shall supplement and be read in conjunction with the existing guidelines/directions issued by the Reserve Bank of India, as amended from time to time, including those tabulated in Annex. 4. Any violation In this regard by REs will be viewed seriously. Applicability 5. This circular shall apply to the following REs: (a) All Commercial Banks (including Local Area Banks, Regional Rural Banks, and Small Finance Banks) excluding Payments Banks; (b) All All-India Financial Institutions (viz. Exim Bank, NABARD, NHB, SIDBI, and NaBFID); SRS.J W.P.No.8328 of 2025 (c) All Non-Banking Financial Companies including Housing Finance Companies; (d) All Primary (Urban) Co-operative Banks, State Co-operative Banks and District Central Co-operative Banks; and (e) All Asset Reconstruction Companies. 6. This circular shall not apply to microfinance (Master Direction - - Microfinance Loans) Direction.'^ 2022’ loans covered under Resen^e Bank of India tRf,q„laton Fram^«,nrU for dated March 14. 2022 7. Thus, as seen from the expressions of the Apex Court coupled with the or sending recovery agents would s right. Such a course, adopted by the impermissible. guidelines, threatening the family members amount to a violation of the petitioner’ respondent bank, is unsustainable and 8. Given the facts and circumstances of the disposed of, directing the respondents issued by the case, the Writ Petition is 2 & 3 to adhere to the guidelines Reserve Bank DOR,ORG.REC.65/21.04.158/2022-23, recovery of the amount from the petitioner. No order as to costs. of India dated W(de RBI/2022-23/108 12.08.2022, concerning As a sequel, pending miscellaneous petitions, if any, shall stand closed. Sd/- V DIWAKAR DEPUTY REGISTRAR SECTION ( //TRUECOPY// To, OFFICER (PrnbMdsman) 6 Sansad Marg, New Delhi - ■ Chief Manager, Mahatma Gandhi Road • One CC to Sri O Udaya Kumar, Advocate [OPUC] 5- Three CD Copies TF HIGH COURT DATED;24/04/2025 \ ORDER WP.No.8328 of 2025 disposing of the W.P., WITHOUT COSTS