A Bench of Justice GS Patel and Madhav Jamdar pronounced the verdict in a clutch of petitions challenging the LOCs issued to restrain people who are indebted to public sector banks from travelling abroad.
The Court clarified that while OMs of the Central government were not ultra vires the Constitution, the subsequent empowerment of bank managers of public sector banks to issue LOCs was arbitrary.
In light of this judgment, all LOCs issued at the request of public sector banks were quashed and set aside by the High Court today.
The Bench, however, clarified that the present order did not affect any existing order issued by a tribunal or criminal court restraining persons from travelling abroad.
A Bench of Justice GS Patel and Madhav Jamdar pronounced the verdict in a clutch of petitions challenging the LOCs issued to restrain people who are indebted to public sector banks from travelling abroad.
The Court clarified that while OMs of the Central government were not ultra vires the Constitution, the subsequent empowerment of bank managers of public sector banks to issue LOCs was arbitrary.
In light of this judgment, all LOCs issued at the request of public sector banks were quashed and set aside by the High Court today.
The Bench, however, clarified that the present order did not affect any existing order issued by a tribunal or criminal court restraining persons from travelling abroad.
