Banks Cannot Block RTI Disclosure: Supreme Court 28.04.2021 in RBI v. Jayantilal Mistry Dismisses Recall Plea
The Supreme Court on 28.04.2021 in Reserve Bank of India vs Jayantilal N. Mistry dismissed a batch of applications by banks seeking recall of 2015 judgment. The 2015 judgment had directed RBI to disclose inspection reports of banks under RTI. Banks argued they were not heard and right to privacy was violated. The Court said no. Practically, what we have seen is banks resisting transparency. Supreme Court said RBI must act in public interest. This blog explains RBI Recall on RTI, natural justice, and abuse of process.
Facts: Jayantilal Mistry 2015 Ordered Disclosure; RBI Did Not Comply; Banks Filed Recall In 2020-21
2015 judgment held RBI cannot claim fiduciary relationship to deny information. Information sought related to inspection reports of banks. RBI instead brought disclosure policy with exemptions. Court in Girish Mittal 26.04.2019 directed withdrawal of exemptions. HDFC, SBI and others then filed MAs seeking recall. They argued judgment affects them directly, violates Puttaswamy privacy, and certain SC judgments were not considered. Respondents argued banks were aware of proceedings and did not seek impleadment. Contempt was against RBI, not banks. The Supreme Court in RBI Recall para 7: "All banks were aware of hearing but did not take step to get impleaded.
"Law: No Recall Provision; Only Review; Substance Over Form
Order XLVII SC Rules provides review. No recall. The Supreme Court in RBI Recall para 8: Citing Gurdip Singh Uban and B.K. Pavithra, Court said recall applications are camouflage to avoid review by circulation.The Court in RBI Recall para 9 citing M.C. Mehta: "Nomenclature given to application is of absolutely no consequence - what is of importance is substance. "Court found substance was review. Applicants were attacking correctness of 2015 judgment. That must be done by review, not recall. On merits, Court made clear it was not deciding correctness of 2015 judgment. Dismissal of recall does not bar other remedies.
Why This Matters: Transparency In Banking Vs Confidentiality
The 2015 judgment reasoned RBI’s duty is to public, not just banks. Hiding inspection reports embarrasses banks but hurts depositors. The Supreme Court in RBI Recall para 1: "RBI has to act with transparency and not hide information that might embarrass banks. "Post this order, RBI cannot rely on 18.12.2019 interim direction to withhold reports. Disclosure must resume. A common mistake is thinking Article 21 privacy covers corporate bank data. 2015 judgment already held public interest prevails.
Conclusion
RBI vs Jayantilal N. Mistry establishes that bank inspection reports rti disclosure supreme court 2021 must be made public. Supreme Court 28.04.2021 dismissed recall applications as not maintainable. As the law stands, abuse of process by filing recall will not be entertained. For RBI, compliance is mandatory. For banks, remedy is review with strict timelines. The Supreme Court’s order in RBI Recall strengthens RTI and depositor protection.
