Supreme Court Dismisses Banks in RTI Disclosure Challenge Due to Finality of Previous Judgment. Writ Petitions by Banks Against RBI's Directions Under Right to Information Act, 2005 Found Non-Maintainable as They Effectively Challenge Settled Judicial Decision in Reserve Bank of India vs. Jayantilal N. Mistry (2016) 3 SCC 525.

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Case Note & Summary

The Supreme Court of India, in a batch of writ petitions led by Writ Petition (Civil) No. 1159 of 2019, addressed challenges by various banks, including private banks, against the Reserve Bank of India's directions to disclose confidential and sensitive information under the Right to Information Act, 2005. The banks contended that such information was exempt under Section 8 of the RTI Act and that special enactments like the Banking Regulation Act, 1949 and the Reserve Bank of India Act, 1934 protected confidentiality. The respondent, through applicant Girish Mittal, filed interlocutory applications seeking dismissal of the writ petitions, arguing that they effectively challenged the final judgment in Reserve Bank of India vs. Jayantilal N. Mistry (2016) 3 SCC 525, which had already settled the issue of disclosure, making the petitions non-maintainable. The core legal issues revolved around whether the writ petitions were maintainable under Article 32 of the Constitution given the finality of the previous judgment, the applicability of RTI Act exemptions, and the interplay between confidentiality under banking laws and the right to information. The banks' arguments included submissions on the right to privacy as a fundamental right, the requirement for third-party notice under Section 11 of the RTI Act, and the overriding effect of special statutes. The court, after hearing counsel from both sides, analyzed precedents such as Naresh Shridhar Mirajkar vs. State of Maharashtra and A.R. Antulay vs. R.S. Nayak, which established that judicial decisions cannot be corrected through writ jurisdiction. The court reasoned that the judgment in Jayantilal N. Mistry was final and had considered rival submissions, including those from banks seeking impleadment, and thus could not be reopened. It held that the writ petitions were not maintainable as they sought to challenge a settled judicial decision, and dismissed them accordingly, while allowing the impleadment application. The decision emphasized the principle of finality in litigation and the limits of Article 32 jurisdiction in revisiting concluded matters.

Headnote

A) Constitutional Law - Writ Jurisdiction - Article 32 of Constitution of India - Judicial decisions cannot be corrected by the Supreme Court in exercise of its jurisdiction under Article 32 of the Constitution of India, as held in Naresh Shridhar Mirajkar vs. State of Maharashtra (1966) 3 SCR 744 and A.R. Antulay vs. R.S. Nayak (1988) 2 SCC 602 - The court reasoned that judicial proceedings are not subject to writ jurisdiction, preventing challenges to final judgments through writ petitions - Held that the present writ petitions effectively challenge the final judgment in Jayantilal N. Mistry and are thus not maintainable (Paras 5, 7-9).

B) Administrative Law - Right to Information - Section 8, Right to Information Act, 2005 - Banks challenged RBI's direction to disclose confidential information under RTI Act, claiming exemption under Section 8 - The court noted that the issue of disclosure under RTI Act was already settled in Jayantilal N. Mistry, where RBI was directed to furnish information - Held that the judgment in Jayantilal N. Mistry is final and cannot be reopened through these writ petitions (Paras 2, 5, 11).

C) Banking Law - Confidentiality - Section 35, Banking Regulation Act, 1949 and Section 45NB, Reserve Bank of India Act, 1934 - Banks argued that inspection reports and other materials are confidential under special enactments like Banking Regulation Act, 1949 and RBI Act, 1934, which may override RTI Act - The court considered submissions but found that these aspects were part of the earlier judgment in Jayantilal N. Mistry, which had already addressed disclosure issues - Held that the petitioners cannot relitigate these points as the matter is res judicata (Paras 16-20).

D) Procedural Law - Maintainability of Petitions - Writ Petitions (Civil) Nos. 1159 of 2019 et al. - The writ petitions were filed by banks challenging RBI's actions under RTI Act, with interlocutory applications seeking dismissal on grounds of finality of previous judgment - The court heard arguments from both sides, including reliance on precedents like Khoday Distilleries Ltd. vs. Registrar General, Supreme Court of India (1996) 3 SCC 114 - Held that the petitions are not maintainable and dismissed them, allowing the impleadment application (Paras 1-6, 10-12).

E) Fundamental Rights - Right to Privacy - Constitution of India - Banks submitted that right to privacy is a fundamental right as recognized in K.S. Puttaswamy vs. Union of India (2017) 10 SCC 1, which should protect confidential information - The court acknowledged this submission but found it insufficient to override the finality of the Jayantilal N. Mistry judgment, which had already balanced privacy and disclosure under RTI Act - Held that the privacy argument does not justify reopening the settled matter (Paras 14-15).

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Issue of Consideration

Whether the writ petitions challenging RBI's directions for disclosure of confidential information under the RT to Information Act, 2005 are maintainable in light of the final judgment in Reserve Bank of India vs. Jayantilal N. Mistry (2016) 3 SCC 525

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Final Decision

The Supreme Court allowed the impleadment application (I.A. No.68597 of 2021) and dismissed the writ petitions as not maintainable, holding that they effectively challenge the final judgment in Reserve Bank of India vs. Jayantilal N. Mistry, which cannot be corrected under Article 32 writ jurisdiction.

Law Points

  • Judicial decisions cannot be corrected under Article 32 writ jurisdiction
  • finality of judgments prevents reopening of settled issues
  • right to privacy is a fundamental right
  • Section 8 of RTI Act provides exemptions
  • Section 11 of RTI Act requires third-party notice
  • special enactments may override RTI Act
  • confidentiality under Banking Regulation Act
  • 1949 and RBI Act
  • 1934
  • balance between public and private interest in disclosure
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Case Details

2022 LawText (SC) (9) 142

I.A. No.68597 of 2021, I.A. No. 51632 of 2022 in Writ Petition (Civil) No.1159 of 2019, I.A. No.54521 of 2022 in Writ Petition (Civil) No.683 of 2021, Writ Petition (Civil) No. 1469 of 2019, Writ Petition (Civil) No.690 of 2021, Writ Petition (Civil) No.709 of 2021, Writ Petition (Civil) No.768 of 2021, Writ Petition (Civil) No.765 of 2021, Special Leave Petition (Civil) No.14343 of 2022

2022-09-30

B.R. Gavai

Mr. Prashant Bhushan, Mr. Rakesh Dwivedi, Mr. Mukul Rohatgi, Mr. Dushyant Dave, Mr. Jaideep Gupta, Mr. K.V. Viswanathan, Mr. Divyanshu Sahay

HDFC Bank Ltd. & Ors.

Union of India & Ors.

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Nature of Litigation

Writ petitions challenging RBI's directions for disclosure of confidential information under the Right to Information Act, 2005

Remedy Sought

Banks seek to quash RBI's action directing disclosure of information, claiming exemption under Section 8 of RTI Act

Filing Reason

Banks filed writ petitions as they cannot approach High Court due to RBI's directions being issued pursuant to judgments in Jayantilal N. Mistry and Girish Mittal cases

Previous Decisions

Final judgment dated 16 December 2015 in Reserve Bank of India vs. Jayantilal N. Mistry (2016) 3 SCC 525 directed RBI to furnish information; order dated 28 April 2021 rejected banks' prayer for recall of that judgment

Issues

Whether the writ petitions are maintainable in light of the final judgment in Reserve Bank of India vs. Jayantilal N. Mistry Whether the RBI's directions for disclosure under RTI Act violate confidentiality provisions under banking laws

Submissions/Arguments

Applicant argued that writ petitions challenge final judgment and are not maintainable under Article 32 Banks argued that information is exempt under Section 8 of RTI Act and confidential under special enactments Banks submitted that right to privacy protects confidential information Banks contended that Section 11 of RTI Act requires third-party notice, which was not considered in earlier judgment

Ratio Decidendi

Judicial decisions are final and cannot be reopened through writ petitions under Article 32 of the Constitution; the principle of finality in litigation prevents relitigation of settled issues, especially when the matter has been conclusively decided by the Supreme Court in a previous judgment.

Judgment Excerpts

This batch of writ petitions has been filed by various Banks including private banks, inter alia, challenging the action of the respondentReserve Bank of India in directing disclosure of confidential and sensitive information pertaining to their affairs It is the contention of the applicant that the present writ petitions, in effect, are challenging the final judgment and order dated 16 th December 2015, passed by this Court in the case of Reserve Bank of India vs. Jayantilal N. Mistry Mr. Prashant Bhushan relies on the judgment of a Nine Judge Bench of this Court in the case of Naresh Shridhar Mirajkar and others vs. State of Maharashtra and Anr. in support of his proposition that a judicial decision cannot be corrected by this Court in exercise of its jurisdiction under Article 32 of the Constitution of India

Procedural History

Writ petitions filed by banks; interlocutory applications for impleadment and dismissal filed; court heard arguments from counsel; treated Writ Petition (Civil) No. 1159 of 2019 as lead matter; allowed impleadment application and dismissed writ petitions.

Acts & Sections

  • Right to Information Act, 2005: Section 8, Section 11
  • Constitution of India: Article 32
  • Banking Regulation Act, 1949: Section 35
  • Reserve Bank of India Act, 1934: Section 45NB
  • Credit Information Companies (Regulation) Act, 2005:
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