Defamation against the bank

Kasturi S (Querist) 04 January 2020 This query is : Resolved
I am a retired officer of a nationalized bank. I was given the punishment of Compulsory Retirement but there was inordinate delay in settlement of retirement benefits. As a result the Staff housing loan availed by me became Non performing. The bank without settling my retirement dues, proceeded with SARFAESI Proceedings and issued a demand notice. As i did not have any income, i could not pay and the Bank issued Possession Notice. This notice was published in Times of India and another local leading Kannada News Paper. Fearing further action by the Bank. i brought Stay Order from Debts Recovery Tribunal, Bengaluru. Now, the bank has settled my Retirement dues and the Housing Loan account will be closed shortly. Had the Bank settled the Retirement benefits timely, this situation would not have arose. Now, my question is
1) Since the Bank has given paper publication and projected me as a defaulter, does it amounts to Defamation. If so, can i file a Defamation Suit against the Bank.
2) Can i claim Interest for the delay in Settlement of Retirement dues and Pension. At what rate i can claim Interest from the Bank. Please advise.

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Dr J C Vashista (Expert) 05 January 2020
1. It is not a defamatory action on the part of Bank.No such case is made out from the averments made by you
2. Yes, you can demand interest on delayed payment of retirement dues, however, there are numerous judgments qua rate of interest.
3. You have already engaged /paid an able, competent and intelligent lawyer, proceed as advised by him/ her without waiting for an obligation ( although it is available FREE OF COST) of experts on this platform, which is bound to differ as it is based on limited facts posted by you.However, if you have lost faith in your lawyer change him/her immediately. If you want second opinion it is advisable to consult another local prudent lawyer for better appreciation of fact/documents and guidance/proceeding.

Sankaranarayanan (Expert) 05 January 2020
I do endorse the expert Vashist ji suggestion

Sudhir Kumar, Advocate (Expert) 05 January 2020
1) Since the Bank has given paper publication and projected me as a defaulter, does it amounts to Defamation. If so, can i file a Defamation Suit against the Bank.

No. Since you were a borrower it was your primary duty to repay the debt. The bank as employer (lender as well) only facilitated payment through salary.

Please read loan agreement if it caters to the situation of delay in terminal benefits on compulsory /voluntary retirement.

Given by this analogy the bank would never be able to recover the loan from dismissed employee.

Sudhir Kumar, Advocate (Expert) 05 January 2020
2) Can i claim Interest for the delay in Settlement of Retirement dues and Pension.

Purely subjective. It5 is settled that th4e terminal benefits of compulsory / voluntary retired or dead employees are not (and cannot ) be as prompt as in case of superannuation.

You can consider this action if it was disproportionately delayed.

Kasturi S (Querist) 05 January 2020
Housing Loan was sanctioned to me based on Employer-Employee relationship and the monthly salary was considered for repayment. Lien was also marked on the Terminal benefits. As a convention, at the time of Retirement the loans are closed by the terminal benefits. My question is although there is a delay, why did the bank proceed with SARFAESI action. By giving Paper Publication and projecting me as a defaulter the bank has damaged my reputation and standing in the locality. If the bank had settled the retirement benefits on time, the loan wouldn't have become bad. Whether the bank has any right to defame a borrower(Person) without his fault. Please advise Sir.

ashok kumar singh (Expert) 05 January 2020
agree with the earlier experts opinion,

Thanks' & Regards'

Ashok Kumar Singh,
Advocate

Raj Kumar Makkad (Expert) 05 January 2020
You are entitled for the grant of interest on the delayed payments made to you but are not entitled for the defamation proceedings.

Sudhir Kumar, Advocate (Expert) 06 January 2020
evry laon is sanctioned based on repaying capacity. Nothing different is case of loan given to employee.

The loan in such case is slightly different that repayment is allowed from salary (in case of some public loans as well) by employer who was lender as well.

HOWEVER THE SALARY NO MORE AVAILABLE AFTER COMPULSORY RETIREMENT SO EMPLOYEE COULD NTO PAY AND CHOSE NOT TO PAY FROM OTHER SOURCES.

Lien was marked on terminal benefits.

NO TERMINAL BENEFITS WERE AVAILABLE IMMEDIATELY AT THE TIME OF COMPULSORY RETIREMENT HENCE CULD NOT BE RECOVERED.

So other form of recovery was started by the bank.

The given facts indicate that the action of Bank can be cruel and hasty but does not at all appear to be illegal and defamation case is not maintainable.

Sb Karma (Expert) 06 January 2020
Need to go deeply with loan terms and condition,and in general you can't defame.
So for more details please give access to local lawyer for read to T&C of your loan,he will clarify you best after read those docs.

Kasturi S (Querist) 06 January 2020
Banks Bipartite Settlement Joint Note does not distinguish between Superannuation, Voluntary Retirement and Compulsory Retirement.. Also. settlement of Terminal benefits is binding and obligatory on the part of the Employer. How can a bank be so insensitive towards a former employee. My question is how can a bank proceed for recovery action, by forgetting that it has to settle his retirement dues. Now, after i approached DRT, they have settled the dues and the loan will be closed.. I think the bank has taken unilateral and unwarranted action and harmed my image. Is it legal on the part of the Bank. How can i take action against my former Bank. Please advise Sir.

Sudhir Kumar, Advocate (Expert) 06 January 2020
You have been advised best as perthe little wisdom possesed by the experts of the forum.

You seem to be highly interested in enrichment of lawyers.

So go ahead.

P. Venu (Expert) 06 January 2020
Facts posted suggest no cause of action for defamation. However, you can seek interest for delayed payment and even initiate an action for damages, if the delay could be proved to willful.

T. Kalaiselvan, Advocate (Expert) 14 January 2020
Defamation case may not be maintainable because the bank s a lender had taken action for default in repayment of home loan against the defaulter.
The employer did not settle your retirement benefits on time, which is the dispute between the employer and employee and there are remedies for the employee against the employer for necessary relief in this regard.
You should not get confused at two different status and seek a single remedy due to frustrations.
A patient thought will fetch you fruitful ides by which you will be benefited instead of stretching the things into more legal complications, by which you may have to lose your money, energy and time.
You can claim interest for the delayed settlement of the retirement benefits at the prevailing bank rates.