Banks can publish defaulters' photos in newspapers: HC

Chennai, Nov 24 (UNI) Madras High Court today held banks had the right to publish the photographs of defaulters in newspapers and such publication would neither amount to invasion of the right to privacy of the individual nor constitute a breach of the duty of secrecy and confidentiality by the banks.

Justice V Ramasubramanian gave the above ruling while dismissing a petition filed by Mr K J Doraisamy, challenging a notice issued by the State Bank of India (SBI), Erode Branch, threatening to publish his photograph and the surety in newspapers if he did not discharge his loan.

Mr Doraisamy borrowed a term loan of Rs six lakh from SBI on May 15, 2001. The bank then issued a notice to him under Sec 13 (2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act on February six, 2006 for defaulting on payment.

Subsequently, the bank also issued a notice dated May 22, 2006, threatening to recover the loan by putting up the security for sale by publishing the details of the properties, the photographs of the borrower and the surety in Tamil and English newspapers.

In his order, the judge said after the advent of the Right to Information Act, 2005 banks had a duty to provide information to the public and this would not amount to violation of the right to privacy and dignity of the borrower.

Quoting precedents, the judge held the duty of the bank to disclose information to the public superceded its duty to maintain secrecy and confidentiality.

Extracting the preamble from the statement of objects and reasons for the recovery of debts due to banks and financial institutions act, 1993, which disclosed that a staggering figure of Rs 5,622 crore of public sector banks' money was locked up in litigation, the judge said 'Right to Privacy' fades out in front of the 'Right to Information' and larger public interest.' If borrowers could find newer and newer methods to avoid repayment of the loans, the banks are also entitled to invent novel methods to recover their dues, he added.

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