CIBIL Score Dispute: Did PNB and SBI Clarify the Petitioner's Loan Status?
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Synopsis
In a significant development, the Supreme Court has called upon PNB and SBI to clarify the loan status of a Uttarakhand man whose CIBIL score is negatively affected due to potential errors in reporting. This case highlights the critical importance of accurate financial reporting and its impact on individuals’ creditworthiness.
Key Takeaways
- Supreme Court seeks clarification from PNB and SBI.
- Petitioner claims CIBIL score is negatively affected by errors.
- Importance of accurate financial reporting emphasized.
- Case could impact credit reporting practices.
- Scheduled for further hearing on January 9, 2026.
New Delhi, Dec 11 (NationPress) The Supreme Court has requested information from Punjab National Bank (PNB) and State Bank of India (SBI) to determine whether a resident of Uttarakhand, whose CIBIL score has reportedly been adversely affected due to PAN duplication and incorrect reporting, has ever taken out a loan or defaulted on any payment.
A bench consisting of Justices K.V. Viswanathan and S.V.N. Bhatti was hearing a special leave petition (SLP) filed by Rajendra Singh Panwar, after the Uttarakhand High Court chose not to intervene in his contempt petition earlier this year. The court issued notices to both banks, instructing them to submit detailed affidavits.
The petitioner argues that, despite having no outstanding loans, his CIBIL score has remained negative since 2020, preventing him from qualifying for any financial products. He also claims that his PAN number is linked to two other individuals with the same name, leading to potential misattribution of their defaults to him.
Senior advocate P.S. Patwalia, representing Panwar, informed the Justice Viswanathan-led bench that even after the Income Tax Department assigned him a new PAN, his negative credit score continues because the new number still reflects data associated with the previous PAN.
The CIBIL Bureau informed the apex court that it merely compiles information provided by banks and acts as a “collating agent,” relying on the records submitted by these institutions.
Highlighting the necessity of the banks’ responses to resolve the dispute, the bench directed PNB and SBI to clarify whether the petitioner has ever taken a loan or if any defaults are recorded against him, scheduling the matter for further hearing on January 9, 2026.
This SLP arises from a series of actions taken in the Uttarakhand High Court, where the petitioner first challenged CIBIL's lack of action regarding his grievance. In February 2020, the Uttarakhand High Court instructed CIBIL to address his representation within three months. A later contempt petition was resolved when CIBIL Chairman M.V. Nair informed the Uttarakhand HC that a decision had been made.
However, Panwar returned to the Uttarakhand High Court in 2024, alleging continued non-compliance with the 2020 order. In an order dated August 7 of this year, a single-judge bench led by Justice Manoj Kumar Tiwari dismissed the second contempt petition, asserting that since CIBIL had already provided an affidavit stating it acted on the petitioner’s representation, “there was no reason to issue a fresh notice for enforcing that very order.”
Following the Uttarakhand High Court’s refusal to reopen the contempt proceedings, Panwar escalated the matter to the Supreme Court, which has now sought responses from the banks involved.
Point of View
I affirm that this case underscores a pressing issue regarding credit reporting accuracy. It highlights the challenges individuals face when their financial reputation is tarnished due to errors beyond their control. We must strive for accountability in financial institutions to ensure fairness for all citizens.
NationPress
12/12/2025
Frequently Asked Questions
What is a CIBIL score?
A CIBIL score is a numeric representation of an individual's creditworthiness, based on their credit history and behavior.
Why is my CIBIL score important?
Your CIBIL score is crucial for obtaining loans and credit facilities, as lenders use it to assess your credit risk.
How can I dispute my CIBIL score?
You can dispute your CIBIL score by contacting the CIBIL Bureau directly and providing necessary documentation to support your claim.
What happens if there are errors in my credit report?
Errors in your credit report can lead to a lower CIBIL score, making it difficult to secure loans or credit cards.
How long does it take to resolve a CIBIL dispute?
The resolution time for a CIBIL dispute can vary, but it typically takes a few weeks to a couple of months.
