SK SAJAHAN Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner took term loan facilities from the respondent no.3- Bank. Subsequently, having failed to service the said loans, an OneTime Settlement (OTS) was arrived at between the petitioner and the said Bank, in terms of which the petitioner paid off the entire settled amount and obtained a No Dues Certificate from the Bank.

(2.) Subsequently, the petitioner approached a financial assistance provider for grant of a business loan which was refused on the ground that the CIBIL [Credit Information Bureau (India) Limited] score of the petitioner is only 706. Due to such low credit rating, the petitioner was denied further financial assistance. Coming to know of the same, the petitioner obtained a report dated August 29, 2023 and learnt that the credit facility status of the petitioner was shown as "written-off" in the CIBIL report. The said status was shown on the basis of the communication made by the respondent no. 3-Bank.

(3.) Even after numerous attempts to have the said rating altered, the petitioner's requests allegedly fell on deaf ears, for which the present writ petition has been preferred. Learned counsel for the petitioner cites Sujith Prasad Vs. Reserve Bank of India and others, reported at 2021 SCC OnLine Ker 221, for the proposition that in cases of repayment of loan, the CIBIL rating should be upgraded accordingly.