Do not beat drums outside residences of defaulters: HC toSFC

Srinagar, Apr 2 (UNI) Jammu and Kashmir High Court has directed the financial institutions, particuarly the State Financial Corporation (SFC) not to beat drums outside the residence of defatulters in the state.

Justice Bashir A Kirmani observed that Financial Institutions would indulge in unethical road shows '' Unworthy of right thinking and serious people,'' by resorting to drum beating outside the houses and business establishments of defaulters.

Financing is a serious business and finance institutions should not make mockery of it by resorting to such methods, he said.

The Court orders came on a writ petition filed by some defaulters to State Financial Corporation (SFC).

The petitioners said they had borrowed a loan from SFC for purchase of tourist vehicles in 1990. However, due to total failure of the tourist season because of disturbed conditions in the valley, they could not repay the loan.

The defaulters pleaded that SFC was denying No Objection Certificates (NOC) required for renewal of their route permits by the Regional Transport Officer and sought help of Court in this regard.

However when the case was sub-judice, the SFC decided to take legal action against defaulters and guarantors by seizing their mortgaged properties.

The SFC also sent official teams along with drum-beaters to houses and offices of defaulters. The defaulters moved to Court again to prohibit the proposed SFC action.

After hearing arguments from both the sides, Justice Kirmani said the respondent was within the right to take recourse to legal remedy available for recovery of loan amounts from petitioners.

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