TMI Blog2018 (5) TMI 2110X X X X Extracts X X X X X X X X Extracts X X X X ..... ice under Section 13(2) of the SARFAESI does not dispute this liability. It is also clear from the impugned letter dated 19th November 2014, which is under challenge in this proceeding, that the Company had been advised to repay the loan amount by 10th December 2014 and that admittedly no steps have been taken by the Company thereafter to honour its financial obligations to the respondent bank. The company has instead filed a suit and an application before the Debts Recovery Tribunal in an attempt to push back their obligations to the bank. The judgement of this Court provides a window of Special Circumstances when the bank can proceed with such coercive measures against borrowers who have committed deliberate default of the RBI Guidel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alleged breach on the part of the petitioners of the terms of the loan covenants entered with the State Bank of India and has threatened to publish photographs, names and addresses of the petitioners in leading newspapers. 2. From the statements made in the writ petition it appears that the Company obtained credit facilities for its business from SBI/respondent No. 1 and the financial assistance granted to the company was enhanced from time to time; the last revision being made in 2012. From the writ petition, it is evident that no statements have been made with regard to the alleged defaults of the loan covenants on the part of the Company save and except the Company receiving a notice under Section 13(2) of the Securitization and Reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a suit has also been filed against the respondent No. 1 in this Court. He relies upon a Division Bench Judgement of this Court delivered on 5th May, 2016 reported in AIR 2016 Cal 281 which considered Rule 8 of the SARFAESI Rules as to whether there is any requirement for issuing notice to the general public in relation to a defaulting borrower and whether the aforesaid would entail publication of photographs of the concerned borrowers. 4. In the said judgment, the Division Bench considered several decisions passed by the Hon'ble Madras High Court in the matter of K.J. Doraiswamy v. The Assistant General Manager State Bank of India of the Hon'ble Madhya Pradesh High Court in Kumari Archana Chauhan v. State Bank of India and the H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d held that there is no violation of any right or legal provision in publishing photographs of borrowers and the surety for non repayment of the loan. Earlier judgements of the Hon'ble Madras High Court namely K.J. Doraiswamy v. The Assistant General Manager State Bank of India, were considered in the said judgment and a strong case made out in favour of the lender bank for resorting to appropriate measures to caution the public at large against the defaulting borrowers. 7. Counsel also relies on a Division Bench Judgment of the Hon'ble Bombay High Court D.J. Exim (India) Pvt. Ltd. Ors. v. State Bank of India Ors. which held that there is no legal impediment prohibiting a bank from publishing photographs of a defaulter. He re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Debts Recovery Tribunal in an attempt to push back their obligations to the bank. 10. In the present Writ Petition this Court has been invited to only consider the case made out by the petitioners for the relief claimed namely, for a writ of mandamus and prohibition restraining the respondent/bank from acting in terms of the impugned communication dated 19th November, 2014. In considering whether such relief can be granted, the fact that the Company has not yet been declared a wilful defaulter under the RBI Master Circular is relevant. It is also relevant that proceedings filed by the Company before this Court as well as the Debts Recovery Tribunal are pending as on date and will consider the merits of the cross-claims at the time of a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
