The Bombay High Court on Thursday criticised Punjab National Bank (PNB) for publishing the names and photographs of the directors of Damara Gold Pvt Ltd in Business Standard newspaper, even though the bank was aware that the directors had already approached the Court for urgent protection.
Jewellery company Damara Gold and its directors had filed a petition challenging PNB’s decision to classify the company as a wilful defaulter and mark its loan account as fraudulent. They argued that the bank’s actions were incorrect and needed to be stopped.
Petitioners Sought Urgent Relief
On December 10, Damara Gold asked the High Court for an urgent hearing so that the bank could be temporarily stopped from taking any action based on its fraud and wilful defaulter orders. However, the Court adjourned the case to December 11 because the petitioners needed to remove the company’s name from the petition. This was required since Damara Gold was undergoing insolvency proceedings, and including the company as a party was not appropriate.
Bank Published Names Despite Pending Case
When the case resumed on December 11, the Court was informed that PNB had gone ahead and published the names and photographs of the directors in the Business Standard newspaper. This was done despite the bank knowing that the matter was before the High Court and that the petitioners had asked for urgent protection.
The Bench of Justice RI Chagla and Justice Farhan Dubash expressed strong displeasure.
The Court said:
“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 judges clarified that the matter was postponed only to allow the petitioners to correct the paperwork, and because of that, the directors could not make an urgent request for interim relief on December 10.
The Court added:
“The conduct of the bank is highly improper and not expected of a nationalised bank.”
PNB Gives Assurance to Court
In response, PNB told the Court that it would not take any further action based on:
- its November 3 order declaring the account fraudulent
- its November 14 order declaring them wilful defaulters
The bank agreed to maintain this position until the Court gives further instructions. The Court accepted the bank’s statement and scheduled the next hearing for January 19, 2026.
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