Bank's Threat to Publish Borrowers' Photos Ruled Unlawful. Human Rights Upheld.

The court ruled in favor of the loanees, holding that the bank's threat to publish their photographs in newspapers violated their fundamental rights under Article 21 of the Constitution of India. The court found no legislative sanction for the bank's proposed action and emphasized the importance of human dignity and privacy. Judicial precedents from other High Courts were considered, with the court ultimately issuing a writ of prohibition restraining the bank from publishing the photographs of the loanees. The bank was allowed to pursue other lawful methods for debt recovery, and no costs were awarded in the case.

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Issues Involved:
1. Propriety of the bank publishing photographs of loanees in newspapers.
2. Legislative sanction for the bank's proposed action.
3. Violation of fundamental rights under the Constitution of India.
4. Validity of the bank's reliance on loan agreements for publishing photographs.
5. Judicial precedents from other High Courts.

Detailed Analysis:

1. Propriety of the bank publishing photographs of loanees in newspapers:
The judgment begins by addressing the central issue of whether the bank's action of threatening to publish the photographs of loanees in newspapers, thereby affecting their dignity, is proper. The court emphasizes that every individual deserves a certain amount of dignity, irrespective of their financial status.

2. Legislative sanction for the bank's proposed action:
The court notes that while the bank is entitled to file suits or initiate proceedings under various acts such as the SARFAESI Act, 2002, and the Kerala Revenue Recovery Act, 1968, there is no provision in these enactments that allows the bank to threaten loanees with the publication of their photographs in newspapers. The judgment points out that such an action is not a measure permitted under Section 13(4) of the SARFAESI Act, and there is no legislative sanction for this practice.

3. Violation of fundamental rights under the Constitution of India:
The court extensively discusses the violation of fundamental rights guaranteed under Article 21 of the Constitution of India. It refers to several Supreme Court judgments to underline that the right to life includes the right to live with human dignity and that the right to privacy is an essential component of the right to life. The court concludes that publishing the photographs of loanees would infringe on their right to live with dignity and honor, as well as their right to privacy, and is therefore violative of Article 21.

4. Validity of the bank's reliance on loan agreements for publishing photographs:
The bank's reliance on specific clauses in the loan agreements to justify its proposed action is scrutinized. The court finds that the clauses in the loan agreements at best empower the bank to disclose information to Credit Information Companies but do not authorize the publication of photographs in newspapers. Furthermore, the court asserts that even if such a clause existed, it would not estop the loanees from challenging the bank's action on the grounds of violation of their fundamental rights.

5. Judicial precedents from other High Courts:
The judgment references decisions from the High Courts of Madras, Madhya Pradesh, and Kolkata. While the Madras and Madhya Pradesh High Courts had upheld the bank's right to publish photographs, the Kolkata High Court had disapproved of it. The court respectfully disagrees with the conclusions of the Madras and Madhya Pradesh High Courts and aligns with the Kolkata High Court's decision, albeit for different reasons. It emphasizes that shaming individuals in public for their financial incapacity is not acceptable in a civilized society.

Conclusion:
The judgment concludes with a writ of prohibition restraining the bank from publishing the photographs of the petitioners in newspapers. However, it clarifies that this does not prevent the bank from pursuing other lawful methods to recover its dues. The writ petitions are allowed, with no costs awarded.

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