Mumbai, Dec 14: The Bombay High Court has strongly criticised Punjab National Bank (PNB) for publishing the names and photographs of directors of a jewellery company in a financial daily, despite being aware that the matter was pending before the court and that the borrowers had sought urgent protection.
Challenge to ‘Wilful Defaulter’ and ‘Fraud’ Classification
The court was hearing petitions filed by jewellery manufacturer Damara Gold and its directors challenging PNB’s orders classifying the company as a “wilful defaulter” and its account as “fraudulent”.
Urgent Hearing Sought Amid Insolvency Proceedings
On December 10, the petitioners had sought an urgent hearing and a temporary stay restraining the bank from taking coercive steps pursuant to its decisions.
However, the court adjourned the matter to December 11 after the petitioners sought deletion of the company’s name from the cause title, as Damara Gold was undergoing corporate insolvency resolution proceedings under the Insolvency and Bankruptcy Code (IBC). A Section 7 petition against the company had been admitted on December 8.
Publication Despite Pending Court Proceedings
When the matter was taken up on December 11, the petitioners informed the court that PNB had, in the meantime, published the names and photographs of the directors in a newspaper, despite being aware of the pending proceedings and the request for ad-interim relief.
HC Expresses Shock and Displeasure
A bench of Justices Riyaz Chagla and Farhan Dubash took strong exception to the bank’s conduct. “We are shocked and enraged as to how the bank could have published this article, considering that they were fully aware of these proceedings and the application made for ad-interim relief by Damara Gold,” the court observed on Friday.
Adjournment Was Procedural, Says Court
The bench clarified that the matter had been adjourned by a day only to enable deletion of the company as a party, which had prevented the remaining petitioners from seeking urgent interim relief earlier. Recording its displeasure, the court said, “The conduct of the bank is highly improper and not expected of a nationalised bank.”
Prior Warning Issued by Bank
The petitioners’ counsel pointed out that the bank had issued an email on December 4 warning that unless dues were cleared, the names and photographs of borrowers, directors and guarantors would be published.
PNB Gives Undertaking to Court
Following the court’s observations, PNB informed the bench that it would not act in furtherance of, or rely upon, its November 3 order declaring the account fraudulent and its November 14 order classifying the company as a wilful defaulter, until further orders of the court. The statement was accepted.
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Next Hearing in January
The court directed PNB to file its affidavit in reply within two weeks and listed the matter for further hearing on January 19, 2026.
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