DEFAULT IN THE REPLAYMENT OF LOANS FROM THE BANKS - THE DEFAULTED CREDITOR PHOTO MUST NOT BE PUBLISHED IN THE NESPAPERS

Publishing loan defaulter’s photos in newspapers is illegal –HIGH COURT OF CALCUTTA

SUBJECT – Whether or not a secured creditor, which has initiated action for enforcement of its security interest in terms of the provisions of the Securitisation and Reconstruction of Financial Asset and Enforcement of Security Interest Act, 2002 (hereafter the SARFAESI Act), is entitled to publish the photograph(s) of the defaulting borrower(s)/guarantor(s) in newspapers/magazines etc. is the common question that arises for an answer on these two writ petitions.

ORDER - Publication of photographs in newspapers, magazines etc. neither being permissible in terms of the SARFAESI Act or the rules framed there under nor under any other rule/notification/guideline having binding effect, I further hold that the threat to publish photographs borders on extra-legal means to recover the dues. The secured creditors are, accordingly, restrained by a prohibitory order from taking such recourse.

33) For the reasons aforesaid, the petitioners’ challenge restricted to the threat of publication of their photographs is upheld. Publication of photographs in newspapers, magazines etc. neither being permissible in terms of the SARFAESI Act or the rules framed thereunder nor under any other rule/notification/guideline having binding effect, I further hold that the threat to publish photographs borders on extra-legal means to recover the dues. The secured creditors are, accordingly, restrained by a prohibitory order from taking such recourse.

34) Insofar as the other reliefs claimed in the writ petitions are concerned, I am inclined to keep my hands off. Should there be failure on the part of the defaulting borrowers/guarantors to repay the loan advanced by the secured creditors, the latter shall be free to proceed against the former strictly in accordance with law for recovery of the secured debt.