IN THE SUPREME COURT OF INDIA (CIVIL ORIGINAL JURISDICTION) PUBLIC INTEREST LITIGATION (PIL) WRIT PETITION (CIVIL) NO. OF 2024

IN THE SUPREME COURT OF INDIA

(CIVIL ORIGINAL JURISDICTION)

PUBLIC INTEREST LITIGATION (PIL)

WRIT PETITION (CIVIL) NO. OF 2024

IN THE MATTER OF: Sardar Charanjit Singh, Editor and Human Rights Activist, Former MP Candidate, Social Worker, [Full Address] ...Petitioner

VERSUS

1. Union of India, Ministry of Finance, Through its Secretary, North Block, New Delhi – 110001
2. Reserve Bank of India, Through its Governor, RBI Headquarters, Mumbai – 400001
3. All Public and Private Sector Banks in India, Through their Chairpersons/CEOs
4. All Public and Private Financial Institutions in India, Through their Chairpersons/CEOs ...Respondents

WRIT PETITION UNDER ARTICLE 32 OF THE CONSTITUTION OF INDIA SEEKING PROTECTION OF LOAN HOLDERS' ECONOMIC, MENTAL, AND SOCIAL RIGHTS THROUGH MANDATORY LOAN INSURANCE

To, The Hon'ble Chief Justice of India And His Companion Justices of the Supreme Court of India

The humble petition of the Petitioner above named:

1. INTRODUCTION OF THE PETITIONER:

1.1 The Petitioner, Sardar Charanjit Singh, is an editor, human rights activist, former MP candidate, and social worker, dedicated to safeguarding the interests of the underprivileged and the general public at large.

1.2 The Petitioner, as a concerned citizen, files this Public Interest Litigation (PIL) in the interest of millions of loan holders in India who face immense financial, mental, and social stress, often leading to extreme outcomes like suicides, due to the inability to repay loans taken from banks and financial institutions.

2. FACTS OF THE CASE:

2.1 Loan holders, including small business owners, farmers, middle-class families, and other common citizens, frequently fall into financial distress due to their inability to repay loans. This financial burden causes immense mental and social pressure, often leading to suicide.

2.2 Financial institutions impose excessive pressure for loan recovery, including charging exorbitant interest, which further worsens the situation for loan holders and their families.

2.3 Many loan holders are not aware of or do not have access to loan insurance, which could provide much-needed financial protection in the case of unforeseen circumstances like death, serious illness, or other crises.

3. IMPORTANCE OF MANDATORY LOAN INSURANCE:

3.1 Loan insurance can provide crucial protection to loan holders in the event of death, illness, or other unexpected situations, thereby alleviating the financial burden on their families.

3.2 Making loan insurance compulsory would ensure that loan holders are better protected from the mental, social, and economic pressure associated with non-repayment of loans.

4. LEGAL GROUNDS:

4.1 Article 21 of the Constitution of India guarantees the right to life and personal liberty, which includes the right to live with dignity. The undue pressure exerted by financial institutions on loan holders violates this constitutional right.

4.2 Article 38 and Article 39 (A) of the Constitution of India mandate that the State ensure a just social, economic, and political order for the welfare of the people. The State is also required to ensure justice and fairness in matters concerning the weaker sections of society, including loan holders.

5. DUTY OF FINANCIAL INSTITUTIONS:

5.1 Financial institutions, both public and private, have a duty to provide safeguards to loan holders to protect them from potential risks, including the inability to repay loans. Loan insurance is a vital tool in fulfilling this responsibility and in preventing undue stress on loan holders and their families.

6. LOAN INSURANCE SYSTEM IN OTHER COUNTRIES:

6.1 Many developed countries have mandatory loan insurance policies in place, ensuring that loan holders and their families are financially protected in case of emergencies. India must implement a similar system to protect its loan holders.

7. PRAYER:

In view of the facts and circumstances stated above, the Petitioner prays that this Hon'ble Court may be pleased to:

7.1 Direct the Respondents to make loan insurance compulsory for all types of loans, ensuring the economic, mental, and social security of loan holders across India.

7.2 Direct the Respondents to formulate a comprehensive policy that protects loan holders from excessive pressure in the event of non-payment of loans and provides adequate safeguards for the families of loan holders.

7.3 Direct the Government and the Reserve Bank of India (RBI) to issue clear and mandatory guidelines for all public and private banks and financial institutions to ensure that loan insurance is made accessible to all loan holders and is integrated into the loan disbursement process.

7.4 Pass any other order or direction that this Hon'ble Court deems fit and proper in the interest of justice.

8. CONCLUSION:

This petition is filed in the public interest to ensure that the loan holders of India are provided with adequate protection against financial, mental, and social pressures. The Petitioner humbly requests this Hon'ble Court to take cognizance of this pressing issue and issue necessary directions to protect the rights of loan holders in India.

Filed by: Sardar Charanjeet Singh Editor and Human Rights Activist, Former MP Candidate [B-186 Shivaji Vihar, Near Shiv Mandir, Old Janta Nagar, New Delhi 110027] [Mobile No 9213247209] Dated: [30/09/2024]