The Kerala High Court has given an important direction to the banks. The court has said that the banks can no longer make the picture and information of the loan defaulter public.
Along with this, the court also said that the banks cannot put pressure on the defaulter to repay the loan by harming his reputation and honour. This decision has been given by the bench of Justice Murali Purushothaman.
Strict court order
Justice Murali Purushottam said that if a person’s picture and information is made public, it is a violation of his right to honor and dignity. The court also clarified that forcing a defaulter to repay the loan by threatening him would be a violation of Article 21 of the Constitution. This gives a person the right to live with dignity. After this decision, no bank will be able to recover the loan in this way. The court also said that this is not the right way to recover.
This was the matter
Now the question arises as to why the court had to give this decision. Actually, Chempazhanthi Agricultural Reform Cooperative Society had filed a petition. They had complained that the banks were putting up flex boards displaying the names and pictures of loan defaulters outside their headquarters. The court gave its decision on this and ordered the removal of these flex boards.
Money was demanded from defaulters
The bank said that they had asked for money from the defaulters several times before taking this step. They said that this is similar to the old method of tom-tomming under the Kerala Cooperative Societies Rules, 1969. This is applicable when someone’s immovable properties are confiscated. However, the court said that this practice of tom-tomming is an old and primitive method. It is not right to adopt it now.
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