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Banks can’t seek lookout circulars citing nation’s economic interests: Punjab and Haryana High Court : The Tribune India

Tribune News Service

Saurabh Malik

Chandigarh, October 8

The Punjab and Haryana High Court has made it clear that banks cannot seek the issuance of lookout circulars (LOC) against persons by claiming that the country’s economic interests would be affected following non-payment of dues by them. The argument could not be accepted since the amount of loan default, not in the country’s economic or larger public interest, was not mentioned in the office memorandums issued by the Ministry of Home Affairs.

What Bench said

‘A person cannot be detained, arrested or prevented from leaving the country if not involved in any cognizable offence’

The Bench of Justice MS Ramachandra Rao and Justice Harminder Singh Madaan asserted: “When they do not themselves draw any line about the quantum of default by a borrower to a financial institution, which would be considered…

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