Supreme Court Judgment of Shanti Devi Sharma vs. ICICI Bank & Ors, 2008 on harassment by a bank employee.
Overview of Supreme Court Judgment – Shanti Devi Sharma vs. ICICI Bank Case
- Supreme Court’s Stand:
- In a landmark judgment, the Supreme Court emphasizes that banks cannot use force to recover loans, preventing tragic consequences, and Ordered no harassment should be done by bank employee.
- The Court reaffirms the importance of adhering to legal standards in a socialized country governed by the rule of law.
- Justices Tarun Chatterjee and Dalveer Bhandari constitute the Bench delivering the judgment.
- Reminder to Banks:
- The Court reminds banks of their responsibility to conduct recovery processes lawfully and ethically.
- The Court emphasizes the significance of operating within legal boundaries.
- Rejection of ICICI Bank’s Plea:
- The Court rejects ICICI Bank’s plea, expressing disapproval of the bank’s actions.
- The request to delete comments from the Delhi High Court is also turned down.
- Abetting Suicide:
- The Supreme Court upholds the Delhi High Court’s comments, holding ICICI Bank and its enforcers accountable for abetting suicide through threats.
- This landmark judgment establishes the Supreme Court’s stance against using force or intimidation for loan recovery.
- It underscores the importance of adhering to legal and ethical practices in the banking sector.
- Reminder of Responsibility:
- The Court reminds banks and financial organizations of their responsibility to operate within the confines of the law and ensure fair treatment of defaulters.
- Upholding the Rule of Law:
- The Supreme Court’s decision highlights the supremacy of the rule of law in a socialized country like India.
- It sets a precedent for lawful and ethical loan recovery practices, promoting transparency and accountability in the banking industry.
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