IN THE HIGH COURT OF KARNATAKA AT BENGALURU
M.Nagaprasanna, J.
Nitin Shambhukumar Kasliwal S/o Shambhukumar S.Kasliwal - Petitioner
Versus
Debt Recovery Tribunal -1 and Ors. - Respondents
Writ Petition No. 26333 of 2023 (GM-DRT)
Decided On : 06-12-2023
Passport - Impounding - Recovery of Debts Due to Banks and Financial Institutions Act, 1993 - Section 22(2)(h) r/w Section 19(25) - Section 10 of the Passports Act, 1967
Fact of the Case:
The petitioner seeks the release of his passport, surrendered before the Debts Recovery Tribunal, which had directed him to surrender it based on an application by banks under Section 22(2)(h) r/w Section 19(25) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993.
Finding of the Court:
The Tribunal's direction to surrender the passport was found to be beyond its authority as the power to impound a passport is vested in the Passport Authority under Section 10 of the Passports Act, 1967. The court held that neither the police nor the criminal court can impound a passport, and the impounding of a passport can only be done by the Passport Authority under the Passports Act.
Issues: The main issue concerned the authority to impound a passport, specifically whether the Tribunal had the power to retain or impound the petitioner's passport.
Ratio Decidendi: The court held that the Tribunal did not have the authority to impound the passport, as the power to impound a passport is vested in the Passport Authority under the Passports Act, 1967.
Final Decision: The court allowed the writ petition and directed the Tribunal to release the petitioner's passports, while reserving the authorities under the Passports Act, 1967 to exercise their power if needed.
ORDER :
The petitioner is before this Court seeking a direction by issuance of a writ in the nature of mandamus directing the 1st respondent/Debts Recovery Tribunal-1, Bangalore (hereinafter referred to as ‘the Tribunal’ for short) to release the passport standing in the name of the petitioner to the petitioner.
2. Facts, in brief, germane are as follows:-
The facts of the case dates back to 18-11-1999, wherein the petitioner is said to have executed certain agreement of guarantee in favour of various lenders towards loans secured from those lenders. On 20-03-2015, the companies – lenders proceed to initiate O.A.No.711 of 2015 before the Tribunal inter alia seeking repayment of sums allegedly in default, attachment and sale of properties of several companies and that of the petitioner. The issue does not concern merit of the claim of the companies or the petitioner before the Tribunal.
3. An application comes to be filed by those Banks who had initiated proceedings in O.A.No.711 of 2015, in I.A.No.1598 of 2015 invoking Section 22(2)(h) r/w Section 19(25) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (‘the Act’ for short) to surrender passport of the petitioner and not leave the country without the permission of the Tribunal. The very next day on 16-04-2015, the Tribunal passes an order allowing the application so filed seeking retention of the passport before the Tribunal. The petitioner then files an application seeking vacation of the interim order and the Banks filed their objections in I.A.No.5872/2015. The application seeking vacation of the interim order comes to be rejected. Then, the petitioner on 05-04-2016, surrenders his passport before the Tribunal. The Tribunal then passes an order on 25-07-2016 holding that the petitioner shall be entitled to his passport as and when he requires to travel, subject to production of appropriate travel itinerary. Since then, the petitioner has been filing applications before the Tribunal seeking permission to travel to several countries and on coming back surrendering the passport to the Tribunal. On 02-12-2016, the petitioner files an application seeking release of passport in his favour. The application comes to be rejected. The petitioner claims that he has represented before the Tribunal seeking return of passport on the score that there is urgent necessity of the old passport as its validity had expired and a fresh passport had to be secured from the hands of the Passport Authority. That having not been considered, the petitioner is before this Court seeking a direction as observed hereinabove.
4. Heard Sri K.N. Phanindra, learned senior counsel along with Sri Bhairav Kuttaiah, learned counsel appearing for the petitioner and Sri H. Shanthi Bhushan, learned Deputy Solicitor General of India appearing for respondent No.2.
5. The learned senior counsel Sri K.N.Phanindra would vehemently contend that the passport cannot be impounded by the Tribunal as its retention would amount to confiscation or impounding of a passport, this is the power of the Passport Authorities and none else. He would seek a direction to the Tribunal to release the passport surrendered before it on 05-04-2016.
6. This Court directed impleadment of Union of India as party respondent to these proceedings as the Passport Act was to fall for interpretation. Therefore, Union of India is impleaded as the 2nd respondent and Sri H. Shanthi Bhushan, learned Deputy Solicitor General of India is also heard in the matter. He would submit that the power to impound a passport is only under Sub-section (3) of Section 10 of the Passports Act, 1967 and no Court except constitutional Courts can pass any order of retention of a passport.
7. I have given my anxious consideration to the submissions made by the respective learned counsel and have perused the material on record.
8. The afore-narrated facts are not in dispute. The issue in the lis does not concern recovery of debt by the Banks before the Tribuna
Damji Valji Shah v. LIC of India
Gobind Sugar Mills Ltd. v. State of Bihar
The main legal point established is that the power to impound a passport is vested in the Passport Authority under the Passports Act, 1967, and neither the police nor the criminal court can impound a....
Point of Law : Release of passport - Since criminal proceedings are pending against the petitioner, the apprehension of the 2nd respondent that he would abscond and not be available for trial also re....
The passport authority must provide a reasoned decision when impounding a passport under Section 10 (3) (e) of the Passports Act, 1967, and cannot rely solely on the existence of pending criminal pro....
The judgment emphasizes the fundamental right to travel abroad and the limited jurisdiction of Debt Recovery Tribunals to impose restrictions on travel under debt recovery regulations.
The authority to impound a Passport lies solely with the Passport authority under the Passports Act, not with the police or courts under the Code of Criminal Procedure.
The court established that the impounding of a passport requires adherence to principles of natural justice and that mere pendency of a criminal case does not automatically justify such action.
The passport authority is bound to impound the passports of the accused in view of the non-bailable warrant issued against them and the pending trial.
The Passport Act, 1967 prevails over the CrPC regarding the impounding of passports, which is exclusively within the jurisdiction of the Passport Authority.
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