The Bombay High Court quashed the Indian government's power to authorize public sector bank chairmen and MDs to issue Look Out Circulars (LOCs) for defaulting borrowers, as it violates fundamental rights.
The Bombay High Court has quashed the power given by the Indian government to chairmen and managing directors of public sector banks to initiate Look Out Circulars (LOCs) against defaulting borrowers. The court deemed the LOCs, which restrict personal freedoms and travel, as unauthorized and in violation of fundamental rights. The ruling applies to over 100 petitions filed in 2020 and later, and the court has set aside all such LOCs in effect. The court also stated that its judgment will not affect orders issued against any defaulter by a tribunal or criminal court that restricts their travel.
April 23, 2024
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