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This follows a decision by the Bombay High Court earlier this week that said public sector banks (PSBs) dont have the power to recommend, or ask, the central government for the issuance of LOCs against defaulting borrowers. ....
Banks can't use lookout circulars as tool to recover money, says High Court : The Tribune India tribuneindia.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from tribuneindia.com Daily Mail and Mail on Sunday newspapers.
The court observed that in the present case, on the day when the LOC was issued, the petitioner was not an accused in any case and there was no material on record to show that his arrest was even contemplated. ....
The HC passed the order in a case where the petitioner, who had worked with Lloyd Electric and Engineering Limited from 2010 to 2017, was issued an LOC at the instance of the bank for the transactions that had taken place after his resignation. ....