Skip to main content

Banks can publish photos of wilful defaulters 

By refusing to interfere with the the judgement and order  dated 28/11/2013 in WPL No.2808/2013 of The HIGH COURT OF BOMBAY, the Hon'ble Supreme Court Vide order dated 14/7/14 in the SLP(C) NO. 37726 of 2013 has allowed the decision of the Hon'ble Bombay High Court in the matter of D.J. Exim vs SBI,  wherein the Hon'ble Bomaby HC allowed photographs of defaulters to be publish subject to certain conditions.


Bombay High Court on 28/11/2013 refused to stop publication of photographs of a defaulter firm in newspapers, saying that it was in larger public interest.

The division bench of Justices V M Kanade and M S Sonak refused to grant relief to the firm D J Exim and its directors






State Bank of India, on October 10, had issued the firm a letter warning that if it did not repay loan amount, photographs of the directors would be published in national newspapers.

The company moved the High Court against this saying no rule permits banks to publish photos.

"They cannot embarrass the defaulters like this. According to the rule only name and address can be published," the firm's lawyers argued.

However SBI counsel Aspi Chinoy pointed out that the company had defaulted on repayment of Rs 53 crores.

"This is not disputed. They are admitted defaulters. We are only stating this fact to the public," he argued, and said the bank "does not resort to such stringent measures" in each and every case.

Accepting this argument, High Court observed that publishing of photographs serves the purpose of creating awareness and cautioning prospective clients.

"In our view, there would be no impediment to publication of photos of the defaulters. There is no legal bar which expressly prohibits the bank from publishing photos.

"However, the decision to resort to such measures should be taken by a very senior level official not below the rank of General Manager of the bank. In this case, due process was followed and the decision cannot be faulted," the court said.

In the past, while the Bombay, Madras and Madhya Pradesh HCs had allowed banks to publish the names and photographs of defaulters, the Calcutta and Kerala HCs held such moves as unconstitutional and impermissible in law while ruling on some cases.






Articles referred: http://www.financialexpress.com/news/name-shame-banks-can-publish-photos-of-wilful-defaulters-says-sc/1270658






Article referred: http://articles.economictimes.indiatimes.com/2013-11-28/news/44547088_1_defaulter-newspapers-high-court
















































Comments











Post a Comment



















Most viewed this month



















Partition proceedings are vitiated even if single co-sharer is not made party or is not served in accordance with law




























Cause Title :  Bhagwant Singh vs  Financial Commissioner (Appeals) Punjab, Chandigarh,  CWP-2132-2018 (O&M), High Court Of Punjab & Haryana At Chandigarh Date of Judgment/Order : 31.08.2022 Corum : Hon’ble Mr. Justice Sudhir Mittal Background A large parcel of land was owned by the Nagar Panchayat. Thereafter, some of the co-sharers sold their shares to third parties including the petitioners herein. On 22.11.1995, respondents No.3 to 5 filed an application for partition of the land. The petitioners were not impleaded as parties.  On completion of proceedings, sanad was issued on 28.08.1996. Vide two separate sale deeds dated 28.05.2008 respondents No.3 and 5 sold some portion in favour of respondent No.6 and 7. These respondents sought implementation of the sanad resulting in issuance of warrants of possession dated 05.06.2008. Allegedly, it was then that the petitioners realized that joint land had been partitioned and that proceedings h...




















Post a Comment









Read more




























Power of Attorney holder can also file cheque bounce cases: Supreme Court




























 The Supreme Court has held that a criminal complaint in a cheque bounce case can be filed and pursued by a person who holds a power of attorney (PoA) on behalf of the complainant.   A three-judge bench headed by Chief Justice P Sathasivam gave the "authoritative" pronouncement on the issue, referred to it by a division bench in view of conflicting judgements of some high courts and the apex court.   "We are of the view that the power of attorney holder may be allowed to file, appear and depose for the purpose of issue of process for the offence punishable under Section 138 of the Negotiable Instruments Act (which deals with cheque bounce cases)," the bench, also comprising justices Ranjana Prakash Desai and Ranjan Gogoi, said.   The bench, in its judgement, said, "...we clarify the position and answer the questions in the following manner:   "Filing of complaint petition under Section 138 of Negotiable Instruments Act through PoA holder is perfectly legal...




















1 comment









Read more




























Christian who reconverts as Hindu SC will get quota benefits




























  Amid the controversy over “ghar wapsi”, the Supreme Court on Thursday ruled that a person who “reconverts” from Christianity to Hinduism shall be entitled to reservation benefits if his forefathers belonged to a Scheduled Caste and the community accepts him after “reconversion”.     Citing articles by B R Ambedkar and James Massey, and reports by Mandal Commission and Chinappa Commission, the court said: “There has been detailed study to indicate the Scheduled Caste persons belonging to Hindu religion, who had embraced Christianity with some kind of hope or aspiration, have remained socially, educationally and economically backward.”     The bench of Justices Dipak Misra and V Gopala Gowda held that a person shall not be deprived of reservation benefits if he decides to “reconvert” to Hinduism and adopts the caste that his forefathers originally belonged to just because he was born to Christian parents or has a Christian spouse.     Expanding the scope of a previous Constitution benc...




















1 comment









Read more