TaxTMI 
TaxTMI 
2015 (3) TMI 438
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....icial First Class Magistrate, Kolenchery. Similarly the bank has filed a suit for realisation of money against the petitioner in WP(C) No. 10781/2013 and two others on the file of the court of the Subordinate Judge of Kottayam wherein the written statements are yet to be filed. It is at this juncture has the bank issued notices to the petitioners threatening to publish their photographs, names and addresses in the leading newspapers. The petitioners challenge the proposed action of the bank as arbitrary and without any legislative sanction besides being violative of the fundamental rights guaranteed under the Constitution of India. The bank maintains that it is entitled to resort to any step for realisation of the amount due including publishing the photographs of the petitioners so long as the same is not forbidden by law. The bank points out that such a course has been approved by the High Courts of Madras and Madhya Pradesh even though frowned upon by the High Court of Kolkata. 3. I heard Mr. Praveen Hariharan, Advocate and Mr. Abraham Mathew, Advocate on behalf of the petitioners and Mr. R.S. Kalkura, Advocate on behalf of the bank. I also heard Mr. P. Deepak, Advocate as Amic....
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.... legislative sanction and is wholly illegal and arbitrary. 5. The Reserve Bank of India has issued a master circular (DBOD No. CID.BC.10/20.16.003/2012-13 dated 02.07.2012) on wilful defaulters to all the scheduled commercial banks and notified financial institutions. The term 'wilful default' has been defined therein and the penal measures to be adopted for realisation of the dues by the bank have been illustrated with a note that it is not exhaustive. The master circular of the Reserve Bank of India also provides for reporting the details of accounts of wilful defaulters to the Reserve Bank of India as also the Credit Information Companies. The Credit Information Companies like the Credit Information Bureau (India) Ltd. (CIBIL) have been registered under the Credit Information Companies (Regulation) Act, 2005. The Credit Information Companies have been advised to disseminate information pertaining to the accounts of wilful defaulters and the recovery steps initiated on their respective websites. This also enables any bank to log into the website of Credit Information Companies and verify the credentials of the person applying for fresh loan on the security of the propert....
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....infringed to a certain extent as is evident by the following observations in Mr. 'X' Vs. Hospital 'Z' [(1998) 8 SCC 296]: "Disclosure of even true private facts has the tendency to disturb a person's tranquility. It may generate many complexes in him and may even lead to psychological problems. He may, thereafter, have a disturbed life all through. In the face of these potentialities, and as already held by this court in its various decisions referred to above, the Right of Privacy is an essential component of right to life envisaged by Article 21. The right however, is not absolute and may be lawfully restricted for the prevention of crime, disorder or protection of health or morals or protection of rights and freedom of others". There is nothing immoral in being unable to repay the loans availed of owing to the floundering of business or due to some other unavoidable reason which can enable the bank to infringe the right to privacy of loanees. There is no compelling public interest warranting the publishing of the photographs of the loanees in newspapers in which case only....
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....ureau (India) Ltd. and any other agency so authorized may use, process the said information and data disclosed by the Bank in the manner as deemed fit by them and further that the Credit Information Bureau (India) Ltd. and any other agency so authorized may furnish for consideration, the processed information and data or products thereof prepared by them to Banks/Financial Institutions and other credit grantors or registered users, as may be specified by the Reserve Bank in this behalf." Similarly the relevant clause in the loan agreement entered into by the petitioner in WP(C) No. 17081/2013 with the bank is as follows: "2. Accordingly, I/We, hereby agree and give consent for the disclosure by the State Bank of India Bank of all any such; (a) Information and data relating to me/us (b) the information or data relating to any credit facility availed of/to be availed by me/us, and (c) default, if any, committed by me/us, in discharge of my/our such obligation, as ....