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M. S. RAMACHANDRA RAO, HARKESH MANUJA
Neha Bedi – Appellant
Versus
Indian Bank – Respondent
JUDGMENT
M.S. Ramachandra Rao, J. - In this Writ Petition, the petitioner is challenging LOC issued against her on 08.03.2022 by respondent No.3 pursuant to the request dt.04.03.2022 made by respondent No.1 for issuance of the same.
The background facts
2. The petitioner is a guarantor for the loan facilities availed by M/s Puneet Fashions Private Limited whose loan account was declared as an NPA and a notice dt.03.10.2012 was issued under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [for short 'the SARFAESI Act, 2002'] by the erstwhile Allahabad Bank, predecessor of respondent No.1/Bank, demanding 120,05,71,911.09 as on 31.08.2012 within 60 days. Since the said amount was not paid by the said company, notice dt.13.02.2013 was also issued under Section 13(4) of the SARFAESI Act, 2002 to the borrower, petitioner and other guarantors.
3. The petitioner is also proprietor of M/s Neha Export Inc, a proprietory concern. The said concern had availed loan facilities of 14 crore from the Allahabad Bank and the petitioner was also guarantor for the said loan. The said loan account became NPA and a notice dt.03.10.2012
The fundamental right to travel abroad under Article 21 of the Constitution of India requires a high threshold to be curtailed, and the issuance of Look Out Circulars (LOCs) should be limited to case....
The central legal point established in the judgment is the high threshold required to deny a person the right to travel abroad, the need for a fair and just procedure in issuing and extending Look Ou....
The central legal point established in the judgment is that the right to travel abroad, as guaranteed by Article 21 of the Constitution of India, cannot be curtailed unless a very high threshold is m....
The main legal point established is the requirement for procedural safeguards in the issuance of Look Out Circulars, ensuring compliance with principles of natural justice and a fair, just, and reaso....
The judgment establishes the principle that the right to travel abroad is protected under the Constitution of India and cannot be deprived without following fair, just, and reasonable procedures.
The court established that Lookout Circulars cannot be issued solely based on financial default; there must be evidence of criminal activity or a legitimate risk of flight.
The personal liberty and fundamental right of movement guaranteed by the Constitution cannot be curtailed at the behest of BOB when the conditions precedent for making such request for opening an LOC....
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