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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.
Voter turnout for all of the 102 Lok Sabha constituencies voting in the 1st Phase of the 2024 Lok Sabha elections on April 19, 2024.
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.
The Delhi High Court has ruled that banks cannot issue Look Out Circulars (LOCs) as a means to recover money. The court stated that LOCs cannot be opened based on the mere possibility of a person being accused in a criminal case, as this infringes on the individual's right to travel abroad, which is a fundamental right.