LI Network
Published on: February 9, 2024 at 13:05 IST
In a significant development, the Karnataka High Court has suspended the Lookout Circulars (LOCs) issued by Bank of Baroda and Punjab National Bank, along with the endorsement by the Bureau of Immigration, against Dr. Bavaguthu Raghuram Shetty, the founder of NMC Health.
Justice Krishna S Dixit, presiding over a single judge bench, granted permission for Shetty to travel to the UAE.
The Court’s decision came with conditions, requiring Shetty to file an affidavit in the Court’s registry and the respondent banks to provide undertakings:
- Shetty must not alienate, encumber, or interfere with any of his properties worldwide, with the term “property” encompassing all interests, disclosed or undisclosed.
- Shetty should submit an affidavit with two sureties worth Rs 1 crore each, pledging to return to India when required in legal proceedings and not leave the country without the prior permission of the court or tribunal authorities.
- In case of legal or extradition proceedings, Shetty must not resist them on any grounds.
Justice Dixit underscored that the purpose of the LOCs isn’t loan recovery, especially when favorable decrees have been obtained. He referred to judgments from American, Australian, and English courts during the pronouncement of the order.
The Court remarked, “You (Respondents) have already obtained decree/orders of Courts for recovery and initiated proceedings for execution; recovery of loan proceedings is not the object of LOCs.”
Highlighting that no criminal case has been filed against Shetty, the court emphasized that, despite obtaining a decree and initiating execution proceedings, holding him back for the purpose of coercive recovery is not justified.
Considering Shetty’s status as an Indian citizen, his age of over 80 years, and the need for travel due to immediate health reasons and court hearings abroad, the court permitted him to travel.
This marks the second petition seeking the recall of LOCs by the banks, citing the petitioner’s requirement to travel abroad for health reasons and court hearings. A previous petition with a similar plea was dismissed by the court on February 12, 2021.
Case Title: Dr. Bavaguthu Raghuram Shetty and Bureau Of Immigration
