2006 (3) TMI 730 - HC - FEMA

Summary

Issues:
Challenging publication of borrower photographs by State Bank of India, quashing impugned demand notices, seeking payment in installments, validity of action under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, alternative remedy before Debts Recovery Tribunal, legality of borrower photographs publication.

Analysis:
The petitioner challenged the publication of borrower photographs by the State Bank of India, labeling them as defaulters. The petitioner sought to quash demand notices (P-1) and (P-2) and requested the option to make payments in installments. The action was taken under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. An amount of &8377; 4,98,03687/- along with interest was due. The court noted that notice (P-1) was issued on a specific date, and a notice for property sale or purchase was issued under Section 13(2) read with Section 9 of the Act. The petitioner was advised to seek an alternative remedy before the Debts Recovery Tribunal under Section 17 of the Act. The court found no grounds for interference with the notices issued.

Regarding the publication of borrower photographs, the court opined that such publication was not impermissible. The court found the action to be neither arbitrary nor illegal. It was determined that the publication was not defamatory, leading to the conclusion that there were no grounds to quash the publication (P-3). The court dismissed the writ petition, upholding the legality of the borrower photographs' publication by the State Bank of India.