TMI Blog2018 (8) TMI 2107X X X X Extracts X X X X X X X X Extracts X X X X ..... ng to business of credit information. It does not relate to settlement of any dispute as between the borrower and the credit institution in relation to the credit information given by the credit institution to the CIC, including the correctness or otherwise of such information. This will be the legal position also in relation to any dispute as between a 'client' as defined in Section 2(c) (which is an inclusive definition) of the Act and the credit institution. Section 18 of the Act would apply only when dispute arises on matters relating to business of credit information. A dispute between the borrower and credit institution, including any dispute as to the correctness or otherwise of the credit information given by the credit inst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hout verification of any details, included false information as furnished by the credit institution, regarding the applicant. Making reference to the different transactions as between the applicant borrower and the credit institution relating to a credit card, the applicant has made allegations against the respondents 1 and 2 in their dealings as a credit institution. In paragraph 13 of the Application, it is pleaded by the applicant that there is deliberate failure on the part of the credit institution to amicably solve the issue and it is therefore that he sought for appointment of an arbitrator to adjudicate the issue. He has pleaded that there were certain proceedings before the Banking Ombudsman and also that the applicant had elicited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f India (W.P. No. 6409 of 2010) and argued that a dispute between the borrower and the credit institution which does not relate to the business of CIC is not to be subjected to the procedure for settlement under Section 18 of the Act, though the provisions of the A C Act are incorporated by reference through that provision of the Act. 6. The Credit Information Companies (Regulation) Act, 2005 was enacted to provide for regulation of CICs and to facilitate efficient distribution of credit and for matters connected therewith or incidental thereto. 'Credit information company' is defined in Section 2(e) of the Act, to mean a company formed and registered under the Companies Act, 1956 and which has been granted a certificate of reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ank may, specify by regulations as a form of business in which it is lawful for a credit information company to engage. Clauses (a) to (c) of sub-section (1) of Section 14 of the Act would show that the activities of the CIC in relation to those clauses commence with the collection of information on trade, credit and financial standing of the borrowers of the credit institution, which is a member of the CIC. Sub-section (1) of Section 17 of the Act is the statutory authorization for the CIC to require its members to furnish such credit information as it may deem necessary, in accordance with the provisions of that Act. Sub-section (2) of Section 17 of the Act obliges the members of the CIC to provide credit information in response to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h is furnished by the credit institution to the CIC. As a necessary corollary, this would mean that any dispute between the borrower and the credit institution in relation to the credit information provided by the credit institution to the CIC is not one that would relate to the business of credit information, which a CIC may engage in, in terms of sub-section (1) of Section 14 of the Act. 10. Sub-section (1) of Section 18 of the Act, which is relevant in the context, reads as follows:- 18. Settlement of dispute .- (1) Notwithstanding anything contained in any law for the time being in force, if any dispute arises amongst, credit information companies, credit institutions, borrowers and clients on matters relating to business of cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... putes could be carried for settlement by conciliation and arbitration in terms of the provisions of the A C Act by invoking Section 18 of the Act. 11. In view of the aforesaid, based on the interpretation of the provisions of the Act, I would follow the decision of the Division Bench of the Bombay High Court in DSL Enterprises Private Limited (supra). The decision of the Calcutta High Court in Sunil Agarwal (supra) rests on different and peculiar facts of that case and does not provide any ratio decidendi which could be applied to the issues of law, in hand. 12. For the aforesaid reasons, this request filed invoking Section 11(6) of the Arbitration and Conciliation Act, 1996 read with Section 18 of the Credit Information Companies ( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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