HC: Bank can’t bar loan defaulter from foreign trip

The high court authorised a city-based businessman to travel to (UAE) and Saudi Arabia for business purposes, pointing out that travel of a citizen cannot be curtailed by a bank on the ground that he is in default of a loan amount.

Himayat Ali Khan, a resident of Bengaluru, had challenged the March 7, 2022 LOC (look out circular) issued by and executed by the Bureau of Immigration.

The bank had claimed that there are recovery proceedings pending against Associate Décor Limited, a company which had taken loan by mortgaging property worth Rs 199 crore. The petitioner is one of the directors of the said company.