The Supreme Court in RBI vs Jayantilal N. Mistry has closed the door on banks trying to recall the 2015 landmark RTI judgment. The Court on 28.04.2021 dismissed 12 miscellaneous applications filed by HDFC Bank, SBI and others seeking recall of judgment dated 16.12.2015. Practically, what we have seen is that banks want inspection reports, risk assessment reports to be kept confidential. Supreme Court said no. RBI has statutory duty to uphold public interest and must disclose under RTI. This blog explains RBI Recall case on maintainability of recall, finality of judgments, and RTI vs bank confidentiality.
Facts: 2015 Judgment Directed Disclosure; Banks Sought Recall In 2019-2021; Contempt Also Filed
In Jayantilal N. Mistry dated 16.12.2015, Supreme Court held RBI is not in fiduciary relationship with banks and must disclose inspection reports under RTI Act. Exemptions u/s 8(1)(a)(d)(e) not applicable. RBI failed to comply. Contempt petitions were filed. RBI’s disclosure policy dated 30.11.2016 was found to be in willful disobedience. Later policy dated 12.04.2019 was deleted. In 2019, HDFC Bank filed MA 2342/2019 seeking recall of 2015 judgment and impleadment. Other private banks followed. By order dated 18.12.2019, Court directed RBI not to release inspection reports pending disposal. Banks argued judgment was passed without hearing them, violates right to privacy under Puttaswamy, and is per incuriam. The Supreme Court in RBI Recall para 6: Main contention was violation of natural justice as banks were directly affected but not heard.A common mistake banks make is filing "recall" instead of review. RBI Recall says substance matters, not nomenclature.
Recall Not Maintainable: Only Review Under Order 47; Finality Of Judgments Important
The Supreme Court held all applications are not maintainable. There is no provision for "recall" in Supreme Court Rules, 2013. Only remedy is Review under Order XLVII. The Supreme Court in RBI Recall para 8 citing Delhi Administration v. Gurdip Singh Uban: "Applications for clarification, modification or recall are often only a camouflage for review petitions. Should not be entertained except in extraordinary circumstances. "The Court cited Rashid Khan Pathan: Filing non-maintainable applications amounts to abuse of process. Finality of judgment must be respected.
The Supreme Court in RBI Recall para 9: "Close scrutiny makes it clear applicants are seeking review of judgment in Jayantilal Mistry. Therefore not maintainable. "Court distinguished cases where recall was entertained. Those involved persons not heard at all. Here dispute was about RBI’s decision under RTI. Banks could have impleaded earlier but did not.
Practical Impact: RBI Must Disclose Inspection Reports; Banks’ Remedy Is Review Not Recall
After RBI Recall, position is clear:
For RBI: Must comply with 2015 judgment and disclose inspection, risk assessment, annual financial inspection reports under RTI. Cannot hide to avoid embarrassment to banks.
For Banks: Cannot file recall application. If aggrieved, file review within 30 days with grounds of error apparent. Or pursue other remedies.
For Public: Right to information about banking health overrides bank confidentiality. RBI’s duty is to depositors and economy.
The Supreme Court in RBI Recall para 1: "RBI has statutory duty to uphold interest of public at large, depositors, country’s economy and banking sector.
"Court also de-tagged Writ Petitions by SBI and HDFC challenging RBI notices. Said those will be decided on merits separately. A common mistake is arguing privacy under Article 21 bars disclosure. RBI Recall did not go into merits but upheld 2015 judgment which already balanced RTI and confidentiality.
Conclusion
RBI vs Jayantilal N. Mistry establishes that rbi rti inspection report supreme court recall 2021 applications fail. Supreme Court 28.04.2021 dismissed recall pleas by banks. As the law stands, finality of judgments is paramount. Recall is not substitute for review. For RBI, transparency mandate continues. For banks, inspection reports are disclosable under RTI. The Supreme Court’s order in RBI Recall reinforces accountability in banking sector.
