Bombay High Court stays LOC against wilful defaulter, allows him to travel to USA to attend son's convocation

The Bombay High Court recently stayed a Look-out Circular (LOC) issued against a "wilful defaulter" to enable him to fly to the United States of America to attend his son's convocation ceremony [Manappadom Subramaniam vs Bureau of Immigration]..A Division Bench of Justices Revati Mohite-Dere and Madhav Jamdar ruled that the travel shall be permitted irrespective of fresh LOCs issued by banks."The LOC in question will not come in the way of the applicant to travel overseas to USA from April 22, 2022 to July 18, 2022. The Immigration Authorities at the Airport will permit the applicant to pass through immigration and to board his flight, irrespective of whether, the immigration system has been updated and the Respondent banks have informed the immigration authorities or not," the order said.However, the Court stated that the defaulter should return to India as per his schedule and thereafter, make an application if he intends to travel afterward..The High Court was considering a petition filed by one Manappadom Subramaniam, who was declared a wilful defaulter in 2019 by the State Bank of India, the Bank of Baroda, the Bank of Maharashtra, the Union Bank of India, the Punjab National Bank and the Central Bank of India. .In his plea, Subramaniam had stated that he is a permanent resident of Mumbai and has two flats in his name, one at Chembur and one at Khargar. He stated that he is ready to file an undertaking before the Prothonotary and Senior Master to that effect, that both the said flats are free from encumbrances and that he will not create any third-party rights in the said flats till the present petition is finally decided.Subramaniam submitted that he intends to travel to the US to attend the convocation ceremony of his son. He also pointed out that he was earlier disallowed to fly on April 15 when he reached the international airport in the city to board his flight, on account of the LOC. .In its interim order, the Court took into account the fact that despite being declared a wilful defaulter in 2019 by five banks, Subramaniam has flied to the US in the recent past. It also considered the fact that his company's director, who also has an LOC against him, was allowed to fly abroad by the High Court in December 2021. .Advocate Pratyush Ranjan appeared for Subramaniam, the Immigration Authorities were represented by advocate Yogeshwar Bhate and the banks were represented by advocate Rathima Maravarman..[Read Order]