Bolledula Vishalraj vs The Union Of India
2025 Latest Caselaw 286 Tel

Citation : 2025 Latest Caselaw 286 Tel
Judgement Date : 7 July, 2025

Telangana High Court

Bolledula Vishalraj vs The Union Of India on 7 July, 2025

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

           WRIT PETITION No.16962 of 2025
ORDER:

Heard Ms.Mukkera Sahithi Sri Kavya, learned

counsel for the petitioner, learned Central Government

Counsel for respondent No.1. Though notices were

served, none appeared on behalf of respondent Nos.2 to

10. Perused the record.

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

"Writ of mandamus declaring the action of the Respondent No.2 in not legitimately protecting the interest of the petitioner by duly enforcing its Circular dated 12.08.2022 vide RBI/2022- 23/108, DOR.ORG.REC.65/21.04.158/2022- 23 against respondent Nos.3 to 10 who are restoring to high-handed measures to recover money without following the Circular dated 12.08.2022 vide RBI/2022-23/108, DOR.ORG.REC.65/21.04.158/2022-23 issued by respondent No.2 ....."

NVSK,J W.P.No.16962 of 2025

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 10 - 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 10 - Banks till May,

2025 and thereafter the petitioner could not pay the

regular installments due to financial losses. It is further

submitted that petitioner has requested respondent Nos.3

to 10 - Banks to grant some time to repay the loan and

pending amounts but respondent Nos.3 to 10 - 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, NVSK,J

which the petitioner has to pay and in view of financial

exigency, the petitioner could not repay the said amounts.

Learned counsel further submitted that certain time may

be granted to the petitioner to work out with the

respondent-banks for reaching the settlement to pay the

amounts in installments 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 NVSK,J

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 regulated entities (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 services. 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, persistently1 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.

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.

NVSK,J

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);

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 loans covered under 'Master Direction - Reserve Bank of India (Regulatory Framework for Microfinance Loans) Directions, 2022', dated March 14, 2022.

Yours faithfully, (Sunil T. S. Nair) Chief General Manager"

9. In view of the above circulars, this Court deems it appropriate to direct the respondents to ensure that the agents engaged by them for recovery of the loan amounts, shall strictly follow the guidelines and instructions issued by the Reserve Bank of India and also the judgments of the Hon'ble Supreme Court in ICICI Bank Ltd. vs. Prakash Kaur's case and ICICI Bank vs. Shanti Devi Sharma's case."

6. Learned counsel for the petitioner further prays this

Court to pass similar orders as passed in W.P.No.13909

of 2011 on 27.02.2025.

NVSK,J

7. Learned counsel appearing for respondents did not

dispute the same.

8. Recording the submissions made by the

learned counsel appearing on either side and in terms of

order passed by this Court in W.P.No.18913 of 2024 on

22.08.2024, this writ petition is disposed of directing the

respondent Nos.3 to 10 - Banks to ensure that the agents

engaged by them for recovery of the loan amounts shall