He said the bank has already taken action against him and the company under various laws like securitization. and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act and Insolvency and Bankruptcy Code.
The petitioner, who was one of the directors of the company, had guaranteed a credit of Rs 69 crore obtained from Union Bank of India.
He later resigned from the company and joined another unit.
After the company failed to repay the loan, the bank initiated proceedings against it under various laws and also requested for opening of LOC against the petitioner.The court said that although the right to travel abroad is guaranteed under Article 21 of the Constitution of India and cannot be taken away arbitrarily and illegally, a large number of cases are now coming to the fore where banks now insist on opening Are giving. Look Out Circular This is only as a measure to recover the money without initiating any criminal proceedings.
The court said that as per the Centre's office memorandum, LOC can be issued when the departure of a person would be prejudicial to the sovereignty or security or integrity of India or bilateral relations or the strategic and/or economic interests of India.
However, LOC cannot be resorted to in every case of bank loan default as citizens should not be harassed and the circumstances must show a high level of seriousness and major impact on the country, the court said.
“The look out circular against the petitioner has been issued only because the company is unable to repay its loans for which the petitioner was given guarantee.There are no criminal proceedings against the petitioner and there is no allegation that the petitioner is involved in embezzlement or misappropriation. Away from the money,” it said.
"In view of the above, Lookout Circular (LOC) issued
“The petitioner is dismissed,” the court ordered.''
The petitioner, who was one of the directors of the company, had guaranteed a credit of Rs 69 crore obtained from Union Bank of India.
He later resigned from the company and joined another unit.
After the company failed to repay the loan, the bank initiated proceedings against it under various laws and also requested for opening of LOC against the petitioner.The court said that although the right to travel abroad is guaranteed under Article 21 of the Constitution of India and cannot be taken away arbitrarily and illegally, a large number of cases are now coming to the fore where banks now insist on opening Are giving. Look Out Circular This is only as a measure to recover the money without initiating any criminal proceedings.
The court said that as per the Centre's office memorandum, LOC can be issued when the departure of a person would be prejudicial to the sovereignty or security or integrity of India or bilateral relations or the strategic and/or economic interests of India.
However, LOC cannot be resorted to in every case of bank loan default as citizens should not be harassed and the circumstances must show a high level of seriousness and major impact on the country, the court said.
“The look out circular against the petitioner has been issued only because the company is unable to repay its loans for which the petitioner was given guarantee.There are no criminal proceedings against the petitioner and there is no allegation that the petitioner is involved in embezzlement or misappropriation. Away from the money,” it said.
"In view of the above, Lookout Circular (LOC) issued
“The petitioner is dismissed,” the court ordered.''
