A bank publishing the photo and details of defaulting borrowers to coerce them to repay loan invades a person’s right to live with dignity and reputation under Article 21 of the Constitution, says the Kerala High Court in, The Mangement Committee of Chempazhanthi Agricultural Improvement Co-operative Society and Another v The Assistant Registrar of Co-operative Societies [2024:KER:97047].
The court says that borrowers cannot be coerced to repay the loans by threatening to damage their reputation and privacy. The publication or display of photographs and other details of defaulting borrowers in public will be an invasion on the right of the borrowers to live with dignity and reputation. Such deprivation of life and personal liberty cannot be made except according to procedure established by law. That is not a mode of recovery mentioned in any Act or Rules.
In this case, the Chempazhanthi Agricultural Improvement Co-operative Society challenged a communication by the Assistant Registrar of Co-operative Societies directing them to remove the flex board, displaying the names and photographs of defaulting borrowers, in front of their head offices.
