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Legal position regarding publication of a demand notice in newsapapers

In Metsil Exports Private Ltd. & anr. v. Punjab National Bank & anr., the question before the Hon'ble Calcutta High Court was what is the legal position regarding publication of a demand notice under section 13(2) of the Act in two newspapers having wide circulation with the photograph of a director/guarantor? Held, If a demand notice under section 13(2) of the Act is served on the borrower/guarantor in the manner statutorily provided for and there is no reason at all to believe that service has not been effected, question of publication thereof in the newspapers does not and cannot arise. It is only when an opinion could reasonably be formed that the borrower is evading service of the demand notice and that alternative modes of service have been exhausted without seemingly positive result in view thereby making it imperative to proceed for the last option i.e. publication in newspapers, that recourse thereto could be taken. The requirement of formation of opinion, which must be available in the record, is the ‘sine qua non’ and the law cannot be observed in the breach.

In view of the nature of constitution of the Companies / Trust / Society etc., photographs of the authorized persons / official(s) concerned viz. Directors / Chairman / Secretary / Treasurer / Trustee etc. should not be published.
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