The DRT has inherent powers to direct passport impounding in debt recovery cases, but such powers must be exercised judiciously, respecting the fundamental right to travel.

ORDER :

D.BHARATHA CHAKRAVARTHY, J.

This Writ Petition challenges the order dated 07.12.2023 made by the second respondent. In this order, the petitioner's application for passport renewal was declined. The operative portion of the order contested in the Writ Petition is extracted as follows:

“NOW THEREFORE, I Shri.Sathish K S, Passport Issuing Authority after considering the facts and hearing the parties involved pass the following order;

1.The issuance of passport facilities to Smt.Vimala Radhakrishnan is refused under Section 6 of the Passport Act, 1967 based on the DRT order dated 04.05.2016.

2.The impounding of the passport of Smt.Vimala Radhakrishnan does not arise as the Passport No J8583919 was already expired on 13.09.2022.

3. The Passport renewal application of Smt.Vimala Radhakrishnan vide file no.CB1074551404922 dated 02.09.2022 will be closed.

However, the applicant can file an appeal to the Joint Secretary (PSP) & CPO, Ministry of External Affairs, Patiala House, Tilak Marg, New Delhi 110 001 against this order.”

2. The brief factual background of the Writ Petition is that it is alleged that dues exceeding Rs.68 crores are payable by the petitioner and others, including the corporate debtor. OA No. 308 of 2016 was filed by the third respondent Bank before the Debts Recovery Tribunal in Chennai under the Recovery of Debts and Bankruptcy Act, 1993 (hereinafter referred to as the RDB Act). While the Original Application was pending, the third respondent submitted an Interlocutory Application, I.A. No. 1239 of 2016, before the Debt Recovery Tribunal, Coimbatore, requesting a directive for respondents 2 and 3 to surrender their respective passports to the Registrar of the Debt Recovery Tribunal. In the event of non-compliance, the request was to impound their passports and instruct the Regional Passport Officer, Coimbatore, to make the necessary entries in the register accordingly. In this application, the Debt Recovery Tribunal issued the following order, and it is essential to extract the entire order dated 04.05.2017, which reads as follows:

“I.A.No.1239/16: (Direction Petition to impound the Passport) This petition has been filed by the Petitioner/Applicant Bank to direct the Respondents 2 and 3 to handover their respect passports to the Registrar, DRT, failing which to impound their passports and direct the Regional Passport Officer. Coimbatore, to make necessary entries in the Register to that effect.

The Ld. Counsel for the Petitioner/Applicant Bank submitted that the total outstanding amount due to the Applicant bank is Rs.48,82,48,583.65, together with interest and while so, the Applicant Bank apprehends that the Respondents / Defendants with an intention to delay and frustrate the recovery of debts are trying to dispose of the entire shares belonging to them to the third parties and are making attempts to move away to foreign countries. The Ld. Counsel further submitted that the respondents are willful defaulters, who are making strenuous efforts to leave the territorial jurisdiction of this Tribunal and are frequently flying abroad and they are leaving the country, it would be impossible for the Applicant Bank to recover their dues and it would frustrate the recovery proceedings initiated by the Applicant Bank. The Ld. Counsel for the Applicant Bank further submitted that this Tribunal has power to pass order under S.19(7) of the Act and have incidental power to prevent a person from going abroad and also ordering arrest of the judgment debtor and his detention in prison under S.25(b) of the Act. The Represent