TMI Blog2015 (5) TMI 194X X X X Extracts X X X X X X X X Extracts X X X X ..... counsel appearing on behalf of the petitioners and the learned senior counsel appearing on behalf of the respondent No. 7. 2. By this petition filed under Article 226 of the Constitution of India the petitioners are seeking a writ of mandamus or any other order/direction for quashing and setting aside the impugned letter dated 10.10.2013 issued by the respondents to the petitioners. The petitioners are also seeking a direction restraining the respondents from publishing the photographs of the petitioners its directors/guarantors and, lastly, it is prayed that the direction may be given directing the respondents to decide the proposal of the petitioners for restructuring the loan account of the petitioners within a specified period. 3. Brief facts which are necessary for the purposes of deciding this petition are as under: 3.1 The petitioner No. 1 is a private limited company incorporated under the provisions of the Indian Companies Act, 1956. The petitioners Nos. 2 and 3 are its directors. The respondent No. 1 is a State Bank of India which is a nationalised bank. The petitioners have availed of credit facilities from the respondent bank from time to time. However, accord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e learned Single Judge of the Calcutta High Court in Writ Petition No. 10315 of 2013 in the case of Ujjal Kumar Das Allianz Convergence (P.) Ltd. v. General Manager, State bank of India since reported as [2005] 1 Comp LJ 125. Reliance is also placed on the judgment of the Kerala High Court in Writ. Petition No. 10864 of 2013 and Writ Petition No. 20686 of 2013; it was submitted that, though the Kerala High Court and the Calcutta High Court had held that the act of publication of photograph in the newspaper is impermissible in law and unconstitutional, it was however pointed out that the bench of High Court of Madras had held in the case of K.J. Doraisamy v Assistant General Manager, State Bank of India [2007] 78 SCL 196 (Mad.) Judgment of the High Court of Madhya Pradesh in Kumari Archana Chauhan v State Bank of India. AIR 2007 MP 45 had held the validity of the publication of photographs of wilful defaulters holding that such publication is in public interest and is not violative of the light of privacy of a person under Article 226 of the Constitution of India. 8. On the other hand, Mr. Chinoy, the learned senior counsel appearing on behalf of the respondents, submitted that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10. After having heard both the counsel at length, in our view, submissions made by the learned counsel for the petitioners cannot be accepted. It is an admitted position that the petitioners have not denied that they are unable to pay the amount which is due and payable to the bank; in fact, the proposal for restructuring of the loan has also been given by the petitioners to the State Bank of India. It is not in dispute therefore that the petitioners are defaulters and the total amount claimed by the bank comes to about rupees fifty three crores approximately. The bank has also initiated proceedings under the Securitization Act and notices have issued under section 13(2) of the said Act and further action has been taken under the provisions of the said Act. Rule 8 of the said Rules merely permits and allows the bank to publish the names of the wilful defaulters. Rule 8 reads as under:- 8. Sale of immovable secured assets. - (1) Where the secured asset is an immovable property, the authorised officer shall take or cause to be taken possession, by delivering a possession notice prepared as nearly as possible in appendix IV to these rules, to the borrower and by affixing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y other thing which the authorised officer considers it material for a purchaser to know in order to judge the nature and value of the property. (7) Every notice of sale shall be affixed on a conspicuous part of the immovable property and may, if the authorised officer deems it fit, put on the website of the secured creditor on the Internet. (8) Sale by any methods other than public auction or public tender, shall be on such terms as may be settled between the parties in writing. 11. A perusal of the said rule clearly indicates that the bank has the right to publish the name of the defaulters by giving their names and addresses and two fold purpose is served as a result of the said publication of the names, firstly, the fact that these persons are wilful defaulters is made known to the public at large and, secondly, it also tends to caution the prospective buyers who may be offered the property which is mortgaged by these defaulters with the bank. This being the primary objective for the publication of the notice, in our view, there would no impediment in publication of photographs of wilful defaulters and particularly those defaulters who have committed various acts of m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... should not publish the photographs in a routine manner and only after following mechanism of examining the facts and circumstances of each case, the bank should consider whether the photographs should be published. We are satisfied that the decision taken by the bank in this case cannot be faulted. 14. So far as two judgments on which reliance has been.placed on behalf of the petitioners are concerned, the said decisions are challenged by the bank and the intra-count appeal is pending before the division bench. Even otherwise, after going through the said judgment with respect we do not agree with the view expressed by the two learned Single Judges of the two High Court. Further, the apex court in the case of V.T. Khanzode (supra) has observed in paragraph as under: Section 58(1) of the Act confers power on the Central Board of Directors of the Bank to make regulations in order to provide for all matters for which provision is necessary or convenient for the purpose of giving effect to the provisions of the Act. It seems to us clear that it is not only convenient but manifestly necessary to provide for the service conditions of the Bank's staff in order to give effect to ..... 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