Gold Loan Recovery Disputes Against Private Financiers Not Maintainable in Writ: SC

Dr. S Shobha Vs Muthoot Finance Ltd. (Supreme Court of India) The dispute originated from three writ petitions filed before the Karnataka High Court by a borrower challenging recovery actions taken by a private finance company in relation to three gold loans. The loans were for ₹15,00,100, ₹4,65,000 and ₹4,15,000. Upon default in repayment, the financier issued notices proposing auction of the pledged gold. The borrower sought writ reliefs directing waiver of penalty and compound interest, reduction of the interest rate from 26.87% to 1.17%, and consequential reliefs against the recovery...