TMI Blog2020 (2) TMI 1578X X X X Extracts X X X X X X X X Extracts X X X X ..... in its favour and has already taken recourse to an execution proceeding, it ought to restrict its implementation of the award of such execution proceeding, which is the due process provided by law, but cannot take recourse to the higher remedy of issuance of an LOC. Even if the amendment annexed to the review petition is taken into consideration or was taken into consideration while passing the order under review, the same would not make a difference in the ratio of the order under review inasmuch as no exceptional case or any adverse effect on the economic interests of India as a whole have been made out either in the review petition or in the original request for issuance of LOC issued by the bank - even if the present amendment was placed before the court while passing the order under review, it would not have any special relevance to the conclusion reached in such order and would not be a relevant factor in passing such order. Since the scope of review is limited, there cannot be any reason why the said limited scope should be exercised in the present case - As far as the contempt application is concerned, the issuance of a rule of contempt is resorted to any extreme cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing the order under review. Learned counsel for the review petitioner- bank cites a judgment reported at 2014 SCC Online Del 6844 (Gautam Khaitan Vs. Enforcement Directorate), wherein the learned Single Judge of Delhi High Court had held, inter alia, that economic offences constitute a class apart and need to be visited with a different approach in the matter of bail. The economic offences, having deep rooted conspiracies and involving huge loss of public funds, need to be viewed seriously and considered as a grave offence affecting the economy of the country as a whole and thereby posing serious threat to the financial health of the country. Learned counsel for the review petitioner-bank argues on the strength of the cited judgment that in the case at hand, the writ petitioner had joint liability for a debt of about ₹ 20 crores, which was not discharged by the writ petitioner. As such, it is submitted that the writ petitioner was rightly prevented from leaving the country, since the non-payment of the huge quantum of loan defaulted by the writ petitioner would put a dent in the economy of the country, thereby adversely affecting the economic interests of India as a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /Chief Executive of all Public Sector Banks are competent to request for opening LOCs at any point of time if departure of a particular person from India is perceived to be detrimental to the 'economic interests of India' or if the departure of such person from India 'ought not to be permitted in the larger public interest'. Learned counsel appearing for the immigration authorities thus submits that, in the present case, the requesting authority had the jurisdiction to seek for an LOC to be issued. A bare perusal of the amendment, on the strength of which the review petition has been filed, shows that the same was over and above the guidelines thereinabove in the principal office memorandum containing the guidelines as to issuance of an LOC. As such, the argument of the writ petitioner, being the applicant in the contempt petition and the opposite party no. 1 in the review application, that the said amendment had to be read in the context of Clauses- (g) and (h) of the original office memorandum, cannot be accepted. It is evident from the amendment itself that the same pertained to LOCs being issued even in such cases as would not be covered by the guide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial defaults from others in labelling those as being against the economic interests of the country as a whole. Even if a loan of ₹ 1/- is not repaid to a bank in the public sector, we cannot draw a distinction between that and a sum of ₹ 20 crores being defaulted. Moreover, there is a specific procedure under the law for recovery of such amount, which has been availed of in the present case by the review petitioner-bank. Admittedly, the SARFAESI proceeding reached culmination and the award passed therein is at the stage of execution. The securities for the loan-in-question are already available for the bank to execute the award granted by the Tribunal. In the event the provision of issuance of LOC are being permitted to be used rampantly as a substitute of execution proceedings, the personal liberty of Indian citizens could potentially be jeopardized and a flood-gate will be opened, giving the government and other public authorities a handle to wreck vengeance on the citizens of India by using the provisions of the office memorandum regarding issuance of LOC to hinder the personal liberty of all citizens merely on the ground of commercial loans being defaulted. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can be drawn in that regard. The economic interests of India, if considered in proper perspective, has to be on a much higher footing, directly and adversely impacting the share market or the economy of the country as a whole, which destabilizes the entire economy of the country and cannot be confined to individual loans on the basis of commercial transactions being defaulted. Even the Circular dated May 10, 2019 handed over by learned counsel for the immigration authorities, shows that a request for opening LOC can be made by a Chairman/Managing Director/Chief Executive of a public sector bank if the offence is perceived to be detrimental to the economic interests of India and ought to be permitted in the larger public interest. Since the bank has a final award in its favour and has already taken recourse to an execution proceeding, it ought to restrict its implementation of the award of such execution proceeding, which is the due process provided by law, but cannot take recourse to the higher remedy of issuance of an LOC. Moreover, it is not disclosed either from the request for LOC or the complaint that the economic interests of India or larger public interest was cate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present amendment was placed before the court while passing the order under review, it would not have any special relevance to the conclusion reached in such order and would not be a relevant factor in passing such order. Since the scope of review is limited, there cannot be any reason why the said limited scope should be exercised in the present case. An additional factor which ought to be considered is that, although the review petitioner-bank might not have access to the amendment, although the same must have been available in the relevant website of the government at the relevant juncture, the authorities, who were co-respondents in the writ petition, could easily have produced the said amendment at the juncture when the order was passed, if they deemed it relevant. The amendment shows that LOCs can be issued in exceptional cases, in such circumstances as mentioned therein, whereby departure of a person from India may be declined at the request of any of the authorities mentioned in Clause- (b), if it appears to such authority, based on inputs received, that the departure of such person is detrimental to the sovereignty or security or integrity of India, or, among other ..... X X X X Extracts X X X X X X X X Extracts X X X X
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