The Bombay High Court strongly criticised Punjab National Bank (PNB) for publishing the names and photographs of the directors of a borrowing company in a leading financial newspaper, despite being aware that the directors had urgently approached the court seeking protection.

Facts:

In the present case, jewellery maker Damara Gold and its directors had approached the Bombay High Court challenging Punjab National Bank’s decision to declare the firm a “wilful defaulter” and to classify its account as “fraudulent”. They sought an urgent hearing on December 10 for an ad-interim injunction to restrain the bank from taking any coercive steps. However, a bench of Justice R.I. Chagla and Justice Farhan Dubash adjourned the matter to December 11 and directed the petitioners to delete the company as a party in view of the ongoing corporate insolvency resolution process.

When the matter was taken up on December 11, the Court was informed that despite being aware of the pending proceedings, PNB had gone ahead and published the names and details of the directors in Business Standard. Reacting sharply, the bench of Justice R.I. Chagla and Justice Farhan Dubash 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.”

Taking strong exception to the bank’s conduct, the bench clarified that the matter had been adjourned by just one day solely to enable the petitioners to delete the company as a party, which was the reason the remaining petitioners could not seek urgent interim reliefs.

Recording its disapproval, the Court observed, “The conduct of the bank is highly improper and not expected of a nationalised bank.”

Punjab National Bank thereafter assured the Court that it would not act upon its fraud classification dated November 3 or its wilful defaulter declaration dated November 14 until further orders. Accepting this undertaking, the bench fixed the matter for its next hearing on January 19, 2026.

Appearance:

Senior advocate Mustafa Doctor with advocates Pooja Batra and Saurabh Nikalje appeared for Damara Gold and its directors.

Advocates Vidhi Suthar, Sushil Kumar and Aditya Juvekar briefed by Kumar Legal Research LLP appeared for PNB.

Advocates Pradeep Mane, Huzan Bhumgara and Riddhi Badhekar briefed by Desai & Diwanji appeared for Reserve Bank of India.

Case Details: Damara Gold Pvt Ltd & Ors v. Punjab National Bank & Ors.