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Look out circular to banks no authority to issue
-Important decision of Bombay High Court
Mumbai In an important decision, the Bombay High Court on Tuesday said that public sector banks do not have the right to issue look out circulars against any defaulter.
Hearing the case of Viraj Shah vs Union of India and others, a division bench of Justice GS Patel and Justice Madhav Jamdar said that under the Office Memorandum (OM) of the Central Government, public banks are not allowed to issue Look Out Circular (LOC) against Indian citizens or foreigners. No power to issue.
According to a report by Bar and Bench, the division bench has given this decision on several petitions challenging the look out circulars issued by public sector banks to prevent borrowers/defaulters from traveling abroad. However, while hearing the case, the division bench clarified that the office memorandum of the central government is not beyond the scope of the Constitution, but the power to give the power to issue look out circulars to the managers of public sector banks is arbitrary.
Along with this, the High Court canceled all the look out circulars issued on the request of public sector banks. However, the division bench made it clear that the order passed by the two-judge bench will not affect any existing order issued by any tribunal or criminal court, restraining such persons from traveling abroad.
What is look out circular
Let us inform that such Look Out Circular issued by the Immigration Bureau of the Union Home Ministry allows such person or persons to be stopped from leaving India by the immigration authorities at any airport or port against whom the circular has been issued. The first look out circular was issued on 27 October 2010. After this, amendments have been made from time to time.
-Important decision of Bombay High Court
Mumbai In an important decision, the Bombay High Court on Tuesday said that public sector banks do not have the right to issue look out circulars against any defaulter.
Hearing the case of Viraj Shah vs Union of India and others, a division bench of Justice GS Patel and Justice Madhav Jamdar said that under the Office Memorandum (OM) of the Central Government, public banks are not allowed to issue Look Out Circular (LOC) against Indian citizens or foreigners. No power to issue.
According to a report by Bar and Bench, the division bench has given this decision on several petitions challenging the look out circulars issued by public sector banks to prevent borrowers/defaulters from traveling abroad. However, while hearing the case, the division bench clarified that the office memorandum of the central government is not beyond the scope of the Constitution, but the power to give the power to issue look out circulars to the managers of public sector banks is arbitrary.
Along with this, the High Court canceled all the look out circulars issued on the request of public sector banks. However, the division bench made it clear that the order passed by the two-judge bench will not affect any existing order issued by any tribunal or criminal court, restraining such persons from traveling abroad.
What is look out circular
Let us inform that such Look Out Circular issued by the Immigration Bureau of the Union Home Ministry allows such person or persons to be stopped from leaving India by the immigration authorities at any airport or port against whom the circular has been issued. The first look out circular was issued on 27 October 2010. After this, amendments have been made from time to time.
Mumbai In an important decision, the Bombay High Court on Tuesday said that public sector banks do not have the right to issue look out circulars against any defaulter.
Hearing the case of Viraj Shah vs Union of India and others, a division bench of Justice GS Patel and Justice Madhav Jamdar said that under the Office Memorandum (OM) of the Central Government, public banks are not allowed to issue Look Out Circular (LOC) against Indian citizens or foreigners. No power to issue.
According to a report by Bar and Bench, the division bench has given this decision on several petitions challenging the look out circulars issued by public sector banks to prevent borrowers/defaulters from traveling abroad. However, while hearing the case, the division bench clarified that the office memorandum of the central government is not beyond the scope of the Constitution, but the power to give the power to issue look out circulars to the managers of public sector banks is arbitrary.
Along with this, the High Court canceled all the look out circulars issued on the request of public sector banks. However, the division bench made it clear that the order passed by the two-judge bench will not affect any existing order issued by any tribunal or criminal court, restraining such persons from traveling abroad.
What is look out circular
Let us inform that such Look Out Circular issued by the Immigration Bureau of the Union Home Ministry allows such person or persons to be stopped from leaving India by the immigration authorities at any airport or port against whom the circular has been issued. The first look out circular was issued on 27 October 2010. After this, amendments have been made from time to time.
