Public Banks Cannot Issue Look Out Circulars Against Defaulters: Bombay High Court
The Bombay High Court today ruled that public sector banks do not have the power in law to issue Look Out Circulars against defaulters. The high court's verdict would render all LOCs issued by such banks against defaulters as quashed. The bench said the Bureau of Immigration will not act upon such LOCs (issued by banks against defaulters). The court also said its judgment would not affect orders issued against any defaulter by a tribunal or a criminal court restraining them from travelling abroad.
