MUMBAI:
Bombay High Court today 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.
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.
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.
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.
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.
"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.
It,
however, said that SBI's earlier undertaking that it would not
publish the photos pending hearing of the petition would remain in
effect for three more weeks, to enable the petitioner company to
appeal in the apex court.
http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/bank-can-publish-defaulters-photo-in-newspapers-high-court/articleshow/26537585.cms
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