CMR Viii National Moot Court Competition, 2022

CMR VIII NATIONAL MOOT COURT COMPETITION, 2022
MEMORIAL ON BEHALF OF THE COURT ON ITS MOTION
TC 11
Before
THE Supreme Court of India
Original writ jurisdiction

Public Interest Litigation
W.P. (CIVIL) NO. ____ OF 2022
Under Article 32 of THE CONSTITUTION OF INDIA
The court on its own motion

v.
THE Credit Information Companies and Ors. RESPONDENT
[MEMORIAL ON BEHALF OF THE COURT ON ITS OWN MOTION]

TABLE OF CONTENTS
TABLE OF CONTENTS II
LIST OF ABBREVIATIONS III
TABLE OF AUTHORITIES IV
STATEMENT OF FACTS V
ISSUE RAISED VI
SUMMARY OF ARGUMENTS VI-VII
WRITTEN PLEADINGS VIII
ISSUE 1: Whether credit score should be the VIII
primary determinant for granting loans and is it
even efficient?
[1.1] Credit score should be the primary determinant VIII-IX
for granting loans. Credit is a necessity for most and
‘to get credit, one must have credit is apt but often
excruciating for the borrowers.
[1.2] The right to seek updates on one’s credit score IX - XI
is a statutory right.
[1.3] Is the evaluation of credit score the most XI-XII

effective method of assessing the creditworthiness of
an individual?
ISSUE 2: Whether the assessment and analysis of XIII

credit history by CICs results in infringement of
the right to privacy?
[2.1] The collection of data under the credit information XIII - XVII
companies act, 2005 much less by private entities is
violative of the right to life including the right to privacy
guaranteed under article 21 of the constitution of India.
[2.2] Making of credit scores mandatory for every XVII- XVIII
scheme and program is violative of the right to life
including the right to privacy under article 21 of the
constitution of India
[2.3] Section 17, of the credit information XVIII-XX
companies’ regulation act, 2005 is violative of the
right to life including the right to privacy guaranteed
under article 21 of the constitution of India
PRAYER XXI
LIST OF ABBREVIATIONS
Information Technology Act,2002 IT ACT,2000

1.
Art. Article
2.
No. Number
3.
Retd. Retired
4.
v. Versus
5.
Anr Another
6.
Ors Others
7.
FRBI RBI
8.
Hon’ble Honorable
9.
AIR All India Report
10.
SC Supreme Court
11.
TABLE OF AUTHORITIES
[A.] CASES
1. Justice K.S. Puttaswamy and Ors. v. Union of India (UOI) and Ors
2. Hyderabad v. Canara bank (2005) 1 SCC 496
3. Kharak Singh v. State of Uttar Pradesh (1964) 1 SCR 332
4. Gobind v. State of Madhya Pradesh (1975) 2 SCC 148
5. K.M. George vs The Branch Manager WP(C). No.18559 OF 2020(T)
6. Sujith prasad v. The Reserve Bank of India and ors WP(C). No.22108 OF 2020(K)
[B.] OTHER AUTHORITIES
1. http://www.scconline.com
2. https://www.investopedia.com/
3. http://www.manupatrafast.com
4. http://www.findlaw.com
5. http://www.judis.nic.in
6. creditmantri.com
7. Live- Mint
8. Indian Express
9. https://indianexpress.com/article/business/economy/credit-score-misused-how-to-fix-
this-key-metric-7793786/
[C.] STATUTES
1. Constitution of India, (1950)

2. Information Technology Act, 2002
3. Credit Information Companies Act, 2005
4. International Covenant on Civil and Political Rights
STATEMENT OF JURISDICTION
The petitioners have approached the Hon’ble Supreme Court of India under Article 32 of the
Constitution of India, 19501.
1
32. Remedies for enforcement of rights conferred by this Part
(1) The right to move the Supreme Court by appropriate proceedings for the enforcement of the rights conferred by
this Part is guaranteed
(2) The Supreme Court shall have power to issue directions or orders or writs, including writs in the nature of
habeas corpus, mandamus, prohibition, quo warranto and certiorari, whichever may be appropriate, for the
enforcement of any of the rights conferred by this Part
(3) Without prejudice to the powers conferred on the Supreme Court by clause ( 1 ) and ( 2 ), Parliament may by
law empower any other court to exercise within the local limits of its jurisdiction all or any of the powers
exercisable by the Supreme Court under clause ( 2 )
(4) The right guaranteed by this article shall not be suspended except as otherwise provided for by this
Constitution
STATEMENT OF FACTS
BACKGROUND
1. In India any credit Card, Personal loan, home loan, Auto loan, consumer Durable Loan,
or any other form of ‘Credit’ or ‘Loan’ necessitates a favorable Credit score generated by
CICs such as MFDAI, CBAL, etc. As per the CICs, the Credit Score is calculated based
on the Credit behavior. It ranges between 300-900 and a score above 700 is generally
considered ‘ideal’. CICs maintain credit-related information of ‘individuals’ and
‘companies. the data is sourced by the CICs from their ‘member institutions’ at a
periodic interval. This credit report reflects a summary of the creditworthiness of an
individual or a company. This report is provided to the banks and other financial
institutions, which is then used as the basis to accept or reject a loan. Meta fax data
analytics is one such company that is known as the most relied on credit information
company since its launch in early 2006 and generates annual revenue to the tune of INR.
600cr.
ROLE OF Venkatesh Ramaswamy and Pallavi Mistry

1. He is a Non-resident Indian (NRI) and ‘Professor’ at the Agriculture University of Dubai.
Currently his regular source of income (i.e., Salary from his teaching Assignment
amounting to 22,500/- Dirhams). He regularly files his income tax returns. He contributes
his portions of income to the education of farmers usually by way of donations. In
December 2021, Mr. Ramaswamy decided to buy an economy class 4- wheeler (Car)
which amounted to INR 12,00,000/-. For INR 7,75,000/- he applied for a loan from the
bank through his NRI Account. As part of the regulatory requirement to disburse loans,
the banker proceeded towards seeking his “credit Score” of him from the CICs and it was
reported as -1. Intrigued by the term used to reject his application - “creditworthiness”
he started his research. Ms. Mistry, an advocate whom he consulted also figured out that
multiple inquiries would deteriorate the credit score.
Conclusion:
1. Seeing the continued reporting of such issues he raised his concerns about the term
creditworthiness and the issues of privacy with the inherent flaw in the CICs data model.
He submitted a report to the CJI of India.
2. The Supreme Court taking Suo moto cognizance of the matter has issued a notice
ISSUE RAISED
I. ISSUE I: Whether the assessment and analysis of credit history by CICs results in
infringement of the right to privacy?
II. ISSUE II: Whether the assessment and analysis of credit history by CICs result in
SUMMARY OF ARGUMENTS
[1]. ISSUE 1: Whether credit score should be the primary determinant for granting loans
and is it even efficient?
[1.1] Any individual who is new to the banking realm will have to suffer because of no default
of his own, but, only because he is new which is not indicative of fairness
Alternative credit scoring helps people who find it difficult to enter into the credit system, by
allowing them easy access to loans and the overall credit system.
[1.2] The right to seek updates on one’s credit score is a statutory right. The right to at least
access and thereby assess the status of the credit scores, will aid the borrower in keeping a track
of any reductions or increments in the credit score, which in turn will succor the borrower in
maintaining an ideal credit score.
[1.3] The issue is also that not all borrowers are well versed in the process of maintaining a
credit score and might not have paid much heed to minor delays in their dues which affect the
credit score of an individual. Also, the effectiveness and reliability are highly questionable. The
evaluation of credit score is not the most effective method of assessing the creditworthiness of
an individual.
[2]. ISSUE 2: Whether the assessment and analysis of credit history by CICs results in
[2.1] The collection of data der the credit information companies act, 2005 much less by
private entities is violative of the right to life including the right to privacy guaranteed
under article 21 of the constitution of India.
The petitioner contends that the collection of information by private entities is excessive than
the information needed by the Credit Information Companies under the Credit Information
Companies Regulation Act, 2005 and therefore is violative of Article 21 of the Constitution of
India and also is not safe and stringent data protection laws should be complied with, since a
large data is already loosed. Government should take measures to somehow protect the privacy
of citizens and since data is leaked hence, it violates Article 21 i.e., the Right to Life under
which the Right to Privacy is infringed.
[2.2] Making of credit scores mandatory for every scheme and program is violative of the
right to life including the right to privacy under article 21 of the constitution of india.
It is humbly submitted before the Hon’ble court that if we make the credit score mandatory for
the government schemes and programs also then there is no option left for the major strata of
people, they have to provide their information to seek loan which is hence an infringement to
the right of life and privacy guaranteed under that as they don’t have an option to make
decisions for themselves.
[2.3] Section 17, of the credit information companies regulation act, 2005 is violative of
the right to life including the right to privacy guaranteed under article 21 of the
constitution of India.
It is humbly submitted before this Hon’ble Court that Section 17, of the Credit Information
Companies Regulation Act, 2005 is violative of the Right to life including the Right to Privacy
guaranteed under Article 21 of the Constitution of India. As the information collected by these
companies is excessive that needed for seeking a loan therefore violative of Article 21 of the
Constitution of India
9
MEMORIAL ON BEHALF OF THE COURT ON ITS OWN MOTION
WRITTEN PLEADINGS
ISSUE 1: Whether credit score should be the primary determinant for granting
loans and is it even efficient?
Issue 1.1: Whether credit score should be the primary determinant for granting of
loans?
Credit is a necessity for most and ‘to get credit, one must have credit’ is apt but often
excruciating for the borrowers. Building credit from the start is a challenging task since
credit history determines a credit score.
There is another method that has gained momentum apparently, called alternative credit
scoring which comprises electronic data collection on the payment behavior of customers.
This can comprise regular expenses such as mobile bills, internet, and also utility bills.
This alternate method can act as a panacea for borrowers who have low credit scores on the
customary or traditional scoring forum.
Alternative credit scoring is based on important pillars; namely, ability, stability, and
willingness of the borrower. While focusing on factors other than credit scores, credit rating
agencies use an applicant’s social and digital data for ascertaining the above-mentioned
factors. These include the applicant’s ability and willingness to pay back the loan and
whether they are financially stable to make complete repayment of borrowings.
Alternative credit scoring focuses on current parameters rather than historical data. This
makes it easier for applicants with no credit score since their reports can still be generated as
per their current financial discipline and credit habits. The scoring also takes into
consideration the social interactions of applicants to get a better view of their ability and
willingness to pay back the money borrowed. Thus, alternative credit scoring is a better
technique for accuracy when compared to traditional scoring methods.
So, therefore, it is submitted before the hon’ble court that credit score solely should not
decide the creditworthiness of an individual as it works to the disadvantage of borrowers
with zero credit history or low credit history like that of Mr. Ramaswamy who has a credit
score of Minus one, even when he never defaulted because he never took any loans before,
10
still, he was showcased having a negative credit score as per the data provided by the CIC
which is highly misleading and unfortunate for a new borrower.
In K.M. George vs The Branch Manager2, the hon’ble court took a liberal approach,
irrespective of the CIBIL score of the father. Appropriate action shall be taken within three
weeks from the date of receipt of a copy of the judgment.
Also, having a low or a negative credit score closes the possibility of any future participation
in the cycle of credit needs. Any individual who is new to the banking realm will have to
suffer because of no default of his own, but, only because he is new which is not indicative
of fairness
Alternative credit scoring helps people who find it difficult to enter into the credit system, by
allowing them easy access to loans and the overall credit system. It provides them with an
opportunity to start rebuilding their credit scores. The complexities and inefficiencies built
by the traditional channels of lending have left out the micro-borrowers and underserved
populations of the society.
The prospective or ‘New to Credit’ customer is evaluated by way of digital lending and
explores the role of financial regulators like the RBI. The digital technology drives the
micro-borrowers to make need-based informed decisions and enables the generation of
alternative credit scores based on non-traditional data thereby improving their financial
inclusion in the money lending market.
Issue 1.2: Is credit score update a statutory right of the borrower?

A credit score is evaluated by many CICs including MFDAI, CBAL, MCDBL, and the
CDCIL amongst other huge companies registered in India. A credit score is calculated based
on credit behavior. It ranges between 300- 900 and a score above 700 is generally considered
to be an ideal credit score. The higher the credit score, the higher the chances of getting a
loan approved.
There are methods to evaluate creditworthiness, they are called the 5 c’s of credit, namely;
character, capacity, capital, collateral, and conditions.
2
WP(C). No.18559 OF 2020(T)
11
As the first important factor is a character, which is determined by way of credit scores, a
credit score is compiled by credit information companies, and based on that a bank accepts
or rejects a loan application. As soon as a borrower applies for a loan or other form of credit,
the lender or bank checks his/her credit score. Hence, a good credit score is very crucial to
easily get a loan at reasonable credit terms.
A credit score is usually affected by many factors, such as repayment history, credit
utilization, number of credit inquiries, length of credit history, etc. Now, it must be noted
that all the factors listed above are crucial to any individual but all these factors are kept
latent from the individual. The reason for this is unknown and also, and if one is sincere
towards maintaining a good credit score, then one must be able to check his credit score and
should be able to get regular updates for the same, rather, the CICs restrict this.
Additionally, if one checks one’s credit score it negatively impacts the score thereby,
Deteriorating it further. The council, therefore, takes inference from Sujith prasad v. The
reserve bank of India and ors 3. Wherein it was held by the hon’ble high court of Kerala
that updation of CIBIL (It must be noted here, that CIBIL is also a registered CIC in India)
score is a borrower's statutory right and therefore, credit rating agencies are legally bound to
consider objections against the rating given to a debtor.
The right to at least access and thereby assess the status of the credit scores, will aid the
borrower in keeping a track of any reductions or increments in the credit score, which in turn
will succor the borrower in maintaining an ideal credit score.
It is taking into account the said fact that the Parliament has enacted the Credit Information
Companies (Regulation) Act, 2005. Section 21(3) of the Act, 20054 reads as follows: -
Alteration of credit information files and credit reports— (1) Any person, who applies for a
grant or sanction of credit facility, from any credit institution, may request such institution to
furnish him a copy of the credit information obtained by such institution from the credit
information company.
3
WP(C). No.22108 OF 2020(K)
4
Credit Information Companies Act, 2005
12
(2) Every credit institution shall, on receipt of a request under subsection (1), furnish to the
person referred to in that subsection a copy of the credit information subject to payment of
such charges, as may be specified by regulations, by the Reserve Bank in this regard.
(3) If a credit information company or specified user or credit institution in possession or

control of the credit information, has not updated the information maintained by it, a
borrower or client may request all or any of them to update the information; whether by
making an appropriate correction, or addition or otherwise, and on such request the credit
information company or the specified user or the credit institution, as the case may be, shall
take appropriate steps to update the credit information within thirty days after being
requested to do so.
Therefore, updation of credit information is a statutory right of a borrower or client of a
Credit Institution, given Section 21(3) of the Act, 2005.
Issue 1.3: Is the evaluation of credit score the most effective method of assessing the
creditworthiness of an individual?
The council contends that the mere evaluation of credit score is not the out effective method
of assessing the creditworthiness of a borrower because of a chain of reasons. The first is,
that not all borrowers are well versed in the process of maintaining a credit score and might
not have paid much heed to minor delays in their dues which affect the credit score of an
individual.
Therefore, the credit score for an individual is on the same line as the credit rank for a
company. The credit score of your business is reflective of the creditworthiness of your
business. A high credit score indicates good budget management, effective expense controls,
and responsible handling of debts. If a business has a poor credit score, it most likely lacks
financial prudence and appropriate planning.
Before making a business loan application, it’s mandatory for a business to check for its
latest business credit score. One of the common reasons for business loan rejection is a high
credit percentage in the business’s capital. An ideal credit percentage is something that
ranges around 30% of the maximum available credit. Now, to improve this, any company
would require a considerable amount of time which is not facile enough for a small company
to abide by.
13
The credit score is undoubtedly not the most effective method to assess the creditworthiness
of a person when there are other methods like alternative credit scoring. Also, if the banks
don’t see this as an effective method, then the banks can always consider other parameters
like ITRs, and collateral attached to the person.
When a loan application is filed before a bank, it demands PAN Card and Income
Certifications (attested by the Consulate) and Income Tax Returns (ITR), duly filed in India.
In the case of Mr. Ramaswamy, after making a down payment of INR. 4, 25,000/-, Mr.
Ramaswamy applied for a loan of INR 7, 75,000/- from the bank through his NRI Account.
The Banker sought his Aadhaar, PAN Card and Income Certifications (attested by the
Consulate), and Income Tax Returns (ITR), duly filed in India. On assessment and
verification, the documents were found to be in order and satisfactory for the disbursement
of the loan.
It is a point that needs elaboration, when every document that the bank demanded from Mr.
Ramaswamy was in order and satisfactory for the disbursement of the loan, then just because
of a low credit score rather than a negative credit score, which implies that he didn’t have a
credit history cannot deprive him of the opportunity to get a loan from a bank for no fault of
his own.
Additionally, the accuracy of the credit score generated by the CICs is highly questionable.
The working of a credit score is by forming connections between various loans granted to a
person and those connections are formed by matching certain similar traits given by a
person. So, there is always a huge probability that certain loans reflected in the credit history
of a person are not the loan that the person has applied for, which can negatively impact a
person.
Furthermore, the perspective of banking institutions is that a person who has defaulted once
will default again, and if a person defaults in three or more consecutive payments then they
come under the ambit of nonperforming assets (NPA). From this vantage point, it becomes
evident that they reckon that a borrower who defaults once tends to default again, and due to
that the credit score gets impacted negatively.
Coming to the effectiveness and the efficiency of assessing the system of creditworthiness by
way of credit scores then it can be said that it is not completely reliable and not absolute.
14
Huge conglomerates like Vijay Mallya, and Nirav Modi are infamous examples of loans
resulting in NPA which is indicative of the imperfect method of creditworthiness.
15
ISSUE 2: Whether the assessment and analysis of credit history by CICs results in
[2.1] The collection of data under the credit information companies act, 2005 much less
by private entities is violative of the right to life including the right to privacy guaranteed
under article 21 of the constitution of India
It is humbly submitted before this Honorable bench that the collection of data by the credit
information companies under the Credit Information Companies Act, 2005 by Private
entities is violative of the Right to Privacy under Article 21 of the Constitution of India.
As stated by this Honorable Court “The state must ensure that information is not used
without the consent of users and that it is used for the purpose and to the extent it was
disclosed. Thus, e.g., if the posting on social media websites is meant only for a certain
audience, which is possible as per tools available, then it cannot be said that all and sundry
in public have a right to somehow access that information and make use of it” 5
“Privacy is the constitutional core of human dignity. Privacy has both a normative and
descriptive function. At a normative level privacy sub-serve those eternal values upon
which the guarantees of life, liberty, and freedom are founded. Privacy includes at its core
the preservation of personal intimacies, the sanctity of family life, marriage, procreation,
the home, and sexual orientation. Personal choices governing a way of life are intrinsic to
privacy. While the legitimate expectation of privacy may vary from the intimate zone to
the private zone and from the private to the public arenas, it is important to underscore that
privacy is not lost or surrendered merely because the individual is in a public place. Privacy
attaches to the person since it is an essential facet of the dignity of the human being” 6
It is humbly submitted on behalf of the petitioners that data collected by these credit
information companies are not safe and it can be leaked by these private entities very easily
threatening the life and liberty of the citizens. This can be leaked to other private entities
which then can use this data for telemarketing, making the life of the consumers/citizens
hell by selling all sorts of products to them. This data can be used by majoritarian
5
Justice K.S. Puttaswamy and Ors. v. Union of India (UOI) and Ors
6
MANU/SC/1044/2017
16
governments for communal profiling of communities and hence depriving them of basic
rights and amenities provided by the government. It is important to understand that this will
result in a massacre if some dictator assumes power in the republic of India. Hence, the
most intimate information/data is demanded by the credit information companies and is
integral to personality and hence a violation of the right to life under Article 21 of the Indian
Constitution.
“Multiple cases have recently come to light of miscreants allegedly using other people’s
permanent account numbers and other documents to avail loans without customers’
knowledge from fintech firms and NBFCs. As many of these loans were not repaid, this
affected the credit score of several borrowers without them having taken and defaulted on
them.”7
“Multiple cases have recently come to light of miscreants allegedly using other people’s
permanent account numbers and other documents to avail loans without customers’
knowledge from fintech firms and NBFCs. As many of these loans were not repaid, this
affected the credit score of several borrowers without them having taken and defaulted on
them, Indians have expressed concern that banks, credit card companies, and telecom
operators or their employees are leaking personal data to fraudsters that the former submit
while availing services, shows a survey conducted by community platform Local circles” 8
“In 2016, just five years ago, the huge data breach, or the dark side of technology, was a
spectacular cybercrime, with credit cards especially frightening to consumers and the
media. According to ITRC, the number of U.S. data breaches in 2020 totaled 1,108—a
sharp 19% decrease from 2019, which saw 1,473 data breaches. Far fewer people were
affected, too: 300 million, a 66% plunge from the year before. Before this slide in data
breaches, a hack on credit bureau Equifax in September of 2017 exposed personal data of
143 million customers, including 209,000 credit card details.” 9
The petitioner humbly submits that the government cannot just delegate its work to private
entities when the privacy of the citizen can be violated in case of any misuse. In District
Registrar and Collector, Hyderabad v. Canara bank10 The Right to Privacy was construed
as a right that attaches to the person. The significance of this is that the Right to privacy is
not lost as a result of confidential documents or information being parted with by the
7
Article (Indian Express) Sunny Verma
8
Live mint Article
9
Investopedia Article (Mrinalini Krishna)
10
(2005) 1 SCC 496
17
customer to the custody of the bank. Access to bank records to the collector does not permit
a delegation of those powers by the collector to a private individual. Information provided

by an individual to a third party (in that case a bank) carries with it a reasonable expectation
that it will be utilized only for the
The purpose for which it is provided. Parting with information (to the bank) does not
deprive the individual of the privacy interest. The reasonable expectation is allied to the
purpose for which information is provided. While legitimate aims of the state, such as the
protection of the revenue may intervene to permit disclosure to the state, the state must take
care to ensure that the information is not accessed by a private entity.
“Data mining with the object of ensuring that resources are properly deployed to legitimate
beneficiaries is a valid ground for the state to insist on the collection of authentic data. But
the data which the state has collected has to be utilized for legitimate purposes of the state
and ought not to be utilized unauthorized for extraneous purposes”. 11
The Supreme Court in R. Rajagopal v. State of Tamil Nadu 27 has held that the right to
privacy is implicit in the right to life and liberty guaranteed to the citizens by article 21. It
is a "right to be let alone". It is a right of the individual to be protected against intrusion
into his personal life or affairs, or those of his family, by direct physical means or by the
publication of information12
The Petitioners submit that In District Registrar and Collector, Hyderabad v. Canara bank 13
it was reaffirmed the right to privacy as emanating from the liberties guaranteed by Article
19 and from the protection of life and personal liberty under
Article 21. The court finds the foundation for the reaffirmation of this right not only in the
judgments in Kharak Singh v. State of Uttar Pradesh14 and Gobind v. State of Madhya
Pradesh15 and the cases which followed but also in terms of India’s international
11
Justice K.S. Puttaswamy and Ors. v. Union of India (UOI) and Ors. (24.08.2017 - SC)
12
Report of the Committee on Privacy and Related Matters, Chairman David Calcutt QC, 1990, Cmnd. 1102,
London: HMSO, page 7
13
(2005) 1 SCC 496
14
(1964) 1 SCR 332
15
(1975) 2 SCC 148
18
commitments under the universal declaration of Human Rights and International Covenant
on Civil and Political Rights (ICCPR).
Personal data includes any information which is about a living, identifiable individual and
relates to the individual. The financial records of an individual would
therefore, classified as personal data and is subject to protection under an individual’s right
to privacy. ‘Arbitrary interference’ in any individual’s privacy and personal information
constitutes an infringement of his fundamental human right to privacy. 16 It is hereby
submitted that; it is now a well-established fact that bank account details are an individual's
private details that should not be shared and secrecy regarding the same should be
maintained
However, emphasize that measures on this behalf are essential and it would be in the fitness
of things that a proper scheme on this behalf is devised at the earliest as once the data is
leaked it can be transferred easily so just severe penalties are not sufficient. Information
that is already leaked cannot be protected further and therefore violates the right to privacy
of citizens. Government should take measures to somehow protect the privacy of citizens
and since data is leaked hence, it violates Article 21 i.e., the Right to Life under which the
Right to Privacy is infringed. It is most respectfully submitted Even if the information was
shared, keeping in mind the public good and welfare, the individual’s right to privacy
cannot be sacrificed on the anvil of fervid desire to find instantaneous solutions to systemic
problems such as unaccounted monies. It is the State’s first responsibility to promote and
protect human rights17
[2.2] Making of credit scores mandatory for every scheme and program is violative of
the right to life including the right to privacy under article 21 of the constitution of
India.
16
0 See Supra 22, 23; J.S. Mill, Principles of Political Economy, p. 306 (1970);
17
U.N. Commission on Economic, Social and Cultural Rights, Statement to the Third Ministerial Conference of
the World Trade Organisation (Nov 26, 1999) UN Doc. E/C.12/1999/9, ¶ 6.
19
It is humbly submitted before this Hon’ble Court that in the case of Justice K S Puttaswamy
K(Retd.), and Anr v. Union of India and Ors, 2017 it was stated that what is contained in
that
person’s bank account could perhaps be stated to be information over which he expects a
reasonable expectation of privacy and would, if divulged by the bank to others, constitute
an infraction of his fundamental right to privacy.
It is humbly submitted before this Hon’ble Court that Creditworthiness is mandatory for a
person seeking loans even under government schemes. This amounts to an unreasonable
interference, and encroachment and constitutes an infraction of our Fundamental Right to
Privacy.
Creditworthiness has also been made mandatory for government schemes and even for the
issue of a simple credit card. “It thus pervades every aspect of an individual’s life” 18.
Concomitantly, there is no opt-out option in this act, which makes consent irrevocable and
deprives individuals of the ability to make decisions about their life.
The Government Schemes are usually for those who are not able to seek loans in usual
circumstances and if the collection of this information is made mandatory even for the
government schemes, then it is a clear violation of the right to life under article 21 of the
Indian constitution.
[2.3] Section 17, of the credit information companies regulation act, 2005 is violative
of the right to life including the right to privacy guaranteed under article 21 of the
constitution of India.
For the purpose of data protection, a body corporate is subject to section 43A of the
18
JUSTICE K S PUTTASWAMY (RETD.), AND ANR VS UNION OF INDIA AND ORS, 2017
20
Information Technology Act, 2000 (“IT Act”) and subsequent Rules, i.e. -The Information
Technology (Reasonable security practices and procedures and sensitive personal data or
Information) Rules, 2011. Rule 5(7)2 of the aforesaid rules requires that the individual must
be provided with the option of ‘opting out of providing data or information sought by the
body corporate. Also, they must have the right to withdraw consent at any point in time.
Whereas in the present, no such condition is fulfilled and therefore does not provide an opt-
out provision and also does not provide an option
to withdraw consent at any point in time. Section 17 of the Act implies that Credit
information is mandatory for receiving a loan then the individual has no other option but
to give details to these credit information companies.
It is humbly submitted before this Hon’ble Court that the doctrine of harmonious
construction
applies when there is an accidental collision or conflict between two enactments and the
Supreme Court has repeatedly read down one provision to give effect to another. Thus,
both the provisions have to be given effect. But if the collision or conflict is such that one
provision cannot co-exist with another, then the latter provision must be struck down.
Section17 of the Credit Information Companies Regulation Act,2005 States: Collection

and furnishing of credit information.—(1) A credit information company or any person
authorized on that behalf by the company may, by notice in writing, in such form, as may
be specified by regulations made by the Reserve Bank or as near thereto, require its
members to be credit institution or credit information company, to furnish such credit
information as it may deem necessary in accordance with the provisions of this Act.
The Act does not clearly define the information that needs to be collected and is just stated
that information deemed to necessarily have to be collected and the companies behind these
words are collecting excessive information about the user which is not even required for
credit.
It is humbly submitted before this honorable bench that “Privacy is the constitutional core
21

of human dignity. Privacy has both a normative and descriptive function. At a normative
level privacy sub-serve those eternal values upon which the guarantees of life, liberty, and
freedom are founded. At a descriptive level, privacy postulates a bundle of entitlements
and interests which lie at the foundation of ordered liberty; Privacy includes at its core the
preservation of personal intimacies, the sanctity of family life, marriage, procreation, the
home, and sexual orientation. Privacy also connotes a right to be left alone. Privacy
safeguards individual autonomy and recognizes the ability of the individual to control vital
aspects of his or her life. Personal choices governing a way of life are intrinsic to privacy.
Privacy protects heterogeneity and recognizes the plurality and diversity of our culture.19
Such legislation/statutes infringe the fundamental rights and hence there should be an
alternative to this where excessive information is not been collected from the customers
seeking a loan and is not being leaked to a third party.
Henceforth this is an infringement of the right to life including the right to privacy
guaranteed under article 21 of the Indian constitution.
19
JUSTICE K S PUTTASWAMY (RETD.), AND ANR VS UNION OF INDIA AND ORS, 2017
22
PRAYER
WHEREFORE IN THE LIGHT OF THE ISSUES RAISED, ARGUMENTS ADVANCED

AND AUTHORITIES CITED, IT IS HUMBLY PRAYED THAT THIS HON‟BLE
COURT
1. To Declare, that the current creditworthiness system is not efficient and there is a
change needed, the credit score should not be considered as the primary factor for
granting loans and an alternative method should be provided to the people who do
not have a credit score due to valid reasons.
1. There is an infringement of the right to privacy and right to life under article 21 by
the credit information companies by collecting the data for granting loans to the
public so there should be an alternative way through which only the required
information is collected to provide loans and also this shouldn’t be necessary for
the schemes introduced by the government.
2. AND PASS ANY OTHER ORDER, DIRECTION, OR RELIEF THAT THIS

HON‟BLE COURT MAY DEEM FIT IN THE INTERESTS OF JUSTICE,
EQUITY, AND GOOD CONSCIENCE.
All of which is humbly prayed,

TC- 11
Counsels for the Respondents
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CMR Viii National Moot Court Competition, 2022

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CMR VIII NATIONAL MOOT COURT COMPETITION, 2022

MEMORIAL ON BEHALF OF THE COURT ON ITS MOTION