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"We deem it appropriate to remind the banks and other financial institutions that we live in a civilised country and are governed by the rule of law," a bench comprising Justices Tarun Chatterjee and Dalveer Bhandari said.
The court while dismissing the ICICI Bank's plea refused to delete the Delhi High Court's remarks that held the bank and its musclemen responsible for abetting a youth to commit suicide by humiliating him and taking away his motorcycle financed by the largest private sector bank.
It also asked the ICICI Bank to pay Rs 25,000 as cost of this litigation to the respondents within three weeks and directed the Delhi Police to conclude the investigation against the bank expeditiously within three months, keeping in view the gravity of the allegations.
The court also directed the concerned Deputy Commissioner of Police to submit the investigation report in the Delhi High Court.
According to the court, complaints received by Reserve Bank regarding violation of the above guidelines and adoption of abusive practices followed by banks recovery agents would be viewed seriously.
Reiterating the RBI Guidelines on Engagement of Recovery Agents, the court said, "The Reserve Bank may consider imposing a ban on a bank from engaging recovery agents in a particular area, either jurisdictional or functional, for a limited period. In case of persistent breach of above guidelines, Reserve Bank may consider extending the period of ban or the area of ban."
India is a strange country. Some illegal Bangladeshis encroached our land in West Bengal long time ago. We have spent huge money in court cases, faced too much physical harassment by the squatters and their political patrons (mainly ruling party supporters) but cannot get our land back. Majority of the high court and SC judges are corrupt and do auction verdicts. Many of them are politically connected/motivated. It’s almost impossible to get justice in India. And this is not any exception but a regular incidence in India, particularly in West Bengal. Either we need to take laws into our own hands (as many are doing now) or get involved in nasty politics. Banks are doing just that.
It is very easy for the judiciary to prohibit the banks from using muscle power to rcover the pending loans. But what about the responsibility of the defaulters? Have they no responsibility in this regard? Lending and borrowing is a two-way contract and if the borrower is unable to repay the amount as per contract terms, is it not his duty to approcah the bank and plead for extension of time? The legal process of recovery is too cumbersome and time-consuming and hence the banks resort to such illegal means. Why does not the judiciary come forward with a fast process for recovering from the borrowers?
Its heartening to see SC take tough stance against erring Banks. Its true that some borrowers sometime misuse banks. But using that as a pretext to employ goons to recover money is horrendous. Banks have highly paid, intelligent top level management. They have to come up with better ways to do credit checks and disburse money, rather than giving money to everyone and putting up goons to thrash the defaulters. ICICI is notorious for this kind of practice, Thanks SC for finally reminding them that thet have to follow rules.
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