Rate Of Interest For Pendente Lite And Future Period

Rate Of Interest For Pendente Lite And Future Period

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Pragati Aggarwal

Rate Of Interest For Pendente Lite And Future PeriodThis article is primarily in relation to the Original Applications (OAs) filed by banks and Financial Institutions (FIs) in Debt Recovery Tribunals (DRTs) under the provisions of Recovery of Debt and Bankruptcy Act, 1993 (RDB Act, 1993)Pendente Lite period means the period from the date of filing of the suit upto the date of judgment. Future period means the period from the date of judgment upto the date of realisation of the decretal amount.Also Read - When Can A Citizen's Right To Travel Abroad Be Restricted? Explained With JudgmentsNowadays banks and FIs are filing OAs in DRTs under the provisions of RDB Act, 1993 for recovery of huge amounts running into thousands of crores of rupees. In view of the same, the element of Rate of Interest has assumed a great importance.Most of the times, OAs filed by the banks and FIs are decreed for the claim amount but the interest for the pendente lite and future rate of interest is awarded at a rate lower than the contractual rate and that too on simple basis instead of on compound basis.Also Read - Explained | UAPA Prosecution Sanction, Process and InterpretationsRDB Act, 1993 vide Section 19(20) provides about the payment of interest for pendente lite and future rate of interest as below -"(20) The Tribunal may, after giving the applicant and the defendant an opportunity of being heard, pass such interim or final order, including the order for payment of interest from the date on or before which payment of the amount is found due upto the date of realisation or actual payment, on the application as it thinks fit to meet the ends of justice."Also Read - Explained| Kerala Human Sacrifice : Which States Have Laws Against Superstitions & Black Magic?Before discussing the legal aspects of the above issue, let us understand the significance of the pendente lite and future rate of interest by a few illustrations.Suppose an OA with a claim of Rs. 100 crores is decided by DRT in 6 years. The bank has claimed pendente lite and future period interest at the rate of 16% with quarterly rest and while deciding the above OA, the DRT grants only 12% interest per annum on simple basis. The calculation of interest for the pendente lite period in the above illustration are given in the following table -Also Read - Explained | Nayanthara-Vignesh Shivan Controversy: What Does Surrogacy (Regulation) Act Say?Principal AmountRs. 100.00 croresPrincipal AmountRs. 100.00 croresCompound Interest @ 16% per annum for 6 years with quarterly restsRs. 156,33,04,164.89Simple Interest @ 12% per annum for 6 yearsRs. 72,00,00,000.00Total Amount (A)Rs. 256,33,04,164.89Total Amount (B)Rs. 172,00,00,000.00Pecuniary Loss A - B = Rs. 84,33,04,164.89Apart from the above pecuniary loss which had already occurred due to grant of reduced rate of interest on simple basis, the said loss is of a continuing nature accruing every month so long as the decretal amount is not realised in entirety.The severity of the pendente lite and future interest can be explained by another illustration where the pendency of the OA was for comparatively a longer period. Though RDB Act, 1993 vide section 19(24) stipulates that all possible efforts shall be made for disposal of the OA by DRTs within a period of 6 months, but the same is not happening and there are thousands of cases which are decided after periods of 5, 10, 15, 20 and even more than 20 years. There is one live matter which had been filed in Delhi High Court in 1986 and upon coming into force of RDB Act, 1993, the said matter was transferred to DRT-I, New Delhi. The said matter has already completed 34 years but is still pending for the adjudication. Now suppose, an OA with a claim of Rs. 50 crores is decided after pendency of 15 years and the DRT awards simple interest @10 % instead of the contractual rate of interest i.e., 15% with quarterly rest. The effect of reducing the pendente lite and future rate of interest from 15% with quarterly rest to 10% on simple basis is being explained in the following tablePrincipal AmountRs. 50.00 croresPrincipal AmountRs. 50.00 croresCompound Interest @ 15% per annum for 15 years with quarterly restsRs. 405,25,66,804.71Simple Interest @ 10% per annum for 15 yearsRs. 75,00,00,000.00Total Amount (A)Rs. 455,25,66,804.71Total Amount (B)Rs. 125,00,00,000.00.Pecuniary Loss A - B = Rs. 330,25,66,804.71Generally speaking, the DRTs do not give any detailed reasoning for reducing the pendente lite and future rate of interest and/or making the same on simple basis as against the compound interest. It appears that the Hon'ble Judges while determining the pendenlite and future rate of interest do not apply their mind to the pros and cons of the same and perhaps are not aware of the fact that by so doing, they are going to cause loss of several crores of rupees to the banks and FIs and at the same time are granting unmerited financial bonus of corresponding amounts to the defaulters of the banks and FIs.Section 19(20) of RDB Act, 1993 which has been quoted above does not confer any discretion on the DRT to reduce the pendelite and future rate of interest but at the same time the said provision also does not stipulate that the DRT shall be bound to award pendente lite and future rate of interest at contractual rate only and that too on compound basis. Hence, there is a grey area and the tribunals pass the orders regarding pendente lite and future interest absolutely as per their discretion.In Central Bank of India v. Ravindra & ors. AIR 2001 SC 3095 (a Constitutional Bench decision), it has been held that the Expression "the principal sum adjudged" occurring in s. 34 CPC includes the amount of interest charged on periodical rests and capitalized with the principal sum actually advanced. It has been further held that "award of interest pendente lite and post-decree is discretionary with the court as it is essentially governed by s. 34 of CPC dehors the contract between the parties……………..The discretion shall be exercised fairly, judiciously and for reasons and not in arbitrary or fanciful manner."It has been held in several cases that in the commercial loans, the pendente lite and future interest should be awarded at contractual rate (which comprises the rate of interest as well as the compounding rests) as a general rule and any reduction may be granted by the court in pendente lite and future interest only in exceptional cases for reasons to be recorded in writing.The Hon'ble Delhi High Court judgment in the matter of Canara bank vs. Marshall Cycle & Ors 1998 SCC OnLine Del 89 has held as under:-"It appears that the preponderance of authority is in favour of the view that when the borrower has promised to pay a particular rate of interest and avail the credit and on default by borrower, when an action is commenced ending in decree, the proper exercise of discretion would be to grant interest at the contractual rate from the date of suit till the date of realization. To reduce or deny interest would amount to penalizing the creditor for approaching the court and encouraging the debtor to deliberately and unjustly prolonging the litigation and this should be the ordinary rule"Further the Hon'ble Delhi High Court in Syndicate Bank vs. M/s W.B. Cements Ltd. 1988 SCC OnLine Del 254 has held that -"Para 14. …..The grant of interest at a rate less than the contractual rate, as matter of rule, will amount to giving a premium to those who trade upon the money of others. The defaulting borrower, in my opinion, cannot be given the benefit of the reduced rate of interest as a matter of rule only because the bank had to resort to legal recourse on account of non-payment by the borrower except of course in exceptional circumstances. The existence of exceptional or special circumstances will depend on the facts and circumstances of each case…... In my opinion, in commercial transaction, grant of interest at the contractual rate ought to be the rule and grant of interest at reduced rate a rare exception….."The Hon'ble Gujarat High Court in the matter of Union Bank of India v. Narender Plastics 1990 SCC OnLine Guj 65 has held as under-Para 7: "The trial court ought to have realized that contractual rate of interest should be the rule and departure is a rare exception. This is so because ordinarily the court can not and would not vary the terms of contract arrived at between the parties. The mutual rights and obligations arising out of the contract are required to be respected and enforced by the courts. The court cannot and would not vary the terms of contract and impose a new contract on the parties. This is the basic underlying principle contained in the provisions of S. 34 of C.P. Code."Para 8: "It is true that the court has discretion to make departure from the aforesaid ordinary rule. But such cases would be only those in which it manifestly appears to the court that the contract is unfair and unconscionable and its enforcement would be shocking to the conscience of the court.……..In cases wherein the amount advanced is to be recovered by public financial institutions, if the courts were to determine the "reasonable" rate of interest, it would be extremely hazardous and it may even lead to disastrous consequences. The task of managing the public money has been entrusted by the nation to the Bankers. It is not entrusted to the courts. Therefore, ordinarily it would not be proper for the courts to arrogate to themselves the task which is not assigned to them…….If the course adopted by the trial court is to be confirmed and if the Bankers are required to take "flexible and pragmatic" approach, it would be an invitation to the traders and businessmen to make defaults in making payments and enter a deal with bank officers……..If this course were to be approved, the honest debtors who are sincere and regular in making payment would be hit by dishonest and unscrupulous people.……..If such "flexible and pragmatic" approach is adopted by the bankers, the end product which may be delivered to the society would not be justice but it would certainly be atrocious injustice and ill-gotten gain by the defaulting debtors. All these would happen at the cost of the society. Such a course would have a dangerous portents for future justice delivery system itself."Para 11: "It needs to be emphasized that weak financial condition should ordinarily not be the criterion for reducing the agreed rate of interest in commercial transactions. A businessman or a trader or an industrialist, who has taken loan from commercial bank or any other FI, would commit default only when his financial circumstances may not permit him to make regular payment and when he is passing through financial crisis. Default in making payment will tell upon his credit. Even one default may be precursor of major catastrophe. Whenever the bank or financial instrument is constrained to file a suit for recovery of money from defaulting debtors, in almost all cases it would be a case of weak financial position of the defaulting debtor. Therefore, weak financial position of defaulting debtor ordinarily cannot be a relevant circumstance for making departure from the rule that in a commercial transaction, the rate of interest to be awarded by the court should be the contractual rate of interest.The same view has been taken by Hon'ble Punjab and Haryana High Court in the matter of Kamlesh Bhargava Hospital and Research Centre (Pvt.) Ltd. and Ors. Vs. Debts Recovery Appellate Tribunal and Ors. reported in MANU/PH/2665/2012 -"26. It is the settled proposition of law that reduction of interest from contractual rate to a lower rate, would be permissible only in exceptional and special circumstances. So far as the present case is concerned, no such special or exceptional circumstances have been pointed out so as to enable this Court to interfere in the matter, reducing the contractual rate of interest. Even in the judgments relied upon by the learned senior counsel, it has been held that award of interest, pendente lite and post decree, is discretionary with the Court. In a given fact situation of the case, if the Court finds it appropriate to reduce the contractual rate of interest, it can exercise its discretion but the same is to be exercised judiciously. We have carefully scanned the record of the present case but could not find any sufficient reason to persuade ourselves, to agree with the contentions raised on behalf of the petitioners."The Hon'ble Supreme Court in the matter of Punjab Financial Corporation Vs. Surya Auto Industries (2010) 1 SCC 297 has held that -"25. The High Court also committed serious error in declaring that the Appellant corporation will be entitled to charge simple interest at the rate of 10% w.e.f. 1.4.2003, i.e., after expiry of six months from the date of taking over the unit. Undisputedly, the Respondent had not challenged the terms of loan agreement. Therefore, the High Court could not have suo motu altered terms of agreement and directed the Appellant to make fresh calculation of the outstanding dues and allowed the Respondent to pay the amount as per fresh demand by selling the mortgaged property. This approach of the High Court is ex facie contrary to the law laid down in U.P. Financial Corporation v. Gem Cap (India) Pvt. Ltd. (supra) and Haryana Financial Corporation v. Jagdamba Oil Mills (supra).26. The direction given by the High Court for review of pending cases in the light of judgment of this Court in Central Bank of India v. Ravindra (supra)is also unsustainable because, as mentioned above, the High Court was not called upon to examine the legality or otherwise of the terms of agreement entered into between the Appellant-corporation and Respondent under which the latter was obliged to pay interest at the particular rate with periodical rests. Moreover, conclusion No. 3 contained in para 55 of that judgment clearly postulates that stipulations incorporated in the contract entered into and binding on the parties shall govern their substantive rights and obligations in the matter of recovery and payment of interest."A question has arisen as to whether in matters where the dues are secured by way of mortgage, any reduction in the rate of interest can be allowed or interest with quarterly rest can be refused. This question has been answered very succinctly by the Hon'ble Supreme Court in the matter of State Bank of India v. Yasangi Venkateshwara Rao (1999) 2 SCC 375-"8. We also find it difficult to agree with the observation of the High Court that normally when a security is offered in the case of mortgage of property , charging of compound interest will be regarded as excessive. Entering into a mortgage is a matter of contract between the parties. If the parties agree that in respect of the amount advanced against a mortgage compound interest will be paid, we fail to understand as to how the court can possibly interfere and reduce the amount of interest agreed to be paid on the loan so taken. The mortgaging of property is with a view to secure the loan and has no relation whatsoever with the quantum of interest to be charged."It will be apposite to refer to the Judgment of the Hon'ble Supreme Court in Indian Bank vs. Blue Jaggers Estate Ltd. & Ors. (2010) 8 SCC 129"22. The argument of the learned counsel for the respondents that the rate of interest is unconscionable, expropriatory and contrary to law also merits rejection because at no stage the respondents had questioned the terms on which loan and other financial facilities were extended by the appellant. That apart, after having enjoyed those facilities for more than one decade, the respondents cannot turn around and raise an argument based on the judgments of this Court in Central Inland Water Transport Corporation v. Brojo Nath Ganguly (1986) 3 SCC 156 and Delhi Transport Corporation v. D.T.C. Mazdoor Congress and others 1991 Supp. (1) SCC 600. It must be remembered that the respondents were not in a position of disadvantage vis-`-vis the appellant. If they so wanted, the respondents could have declined to avail loan and other financial facilities made available by the appellant. However, the fact of the matter is that they had signed the agreement with open eyes and agreed to abide by the terms on which the loan, etc. was offered by the appellant. Therefore, the doctrine of unconscionable contract cannot be invoked for frustrating the action initiated by the appellant for recovery of its dues.25. …...The Court cannot lose sight of the fact that the bank is a trustee of public funds. It cannot compromise the public interest for benefitting private individuals. Those who take loan and avail financial facilities from the bank are duty bound to repay the amount strictly in accordance with the terms of the contract. Any lapse in such matters has to be viewed seriously and the bank is not only entitled but duty bound to recover the amount by adopting all legally permissible methods."The Madras High Court in Dr. E. Prabakaran and Another vs. Lakshmi Vilas Bank Limited 2011 SCC OnLine Mad 563 has held that -"53…..Normally, the grant of interest at the contractual rate ought to be the General Rule However, the use of discretion to reduce the contract rate or refuse interest is an exception. To deprive or deny interest will tantamount to penalizing a Creditor for approaching the Competent Forum/Court and further will encourage the Debtor to wantonly and unfairly procrastinate the litigation. If a competent Forum/ a Court of Law is inclined to reduce the rate of interest either present or future, such reduction must be supported by valid reasons".It is emphasised that a DRT is a creature of statute and has to dispense justice in accordance with the letter and spirit of the law. The DRT cannot travel beyond law and act as a charity institution at the cost of public money.The willful defaulters of the bank live a lavish life and reside in palatial houses, maintain several luxury cars in the names of different companies, trusts, individual relatives, etc. but because of the laxity in our legal position, they never cooperate in liquidation of bank dues.That as per existing legal provisions, no payments are required to be made by the borrowers/guarantors towards the liquidation of the claim amount or towards the interest amount accruing during the pendency of the OA. This results in a holiday for payment of monthly interest also. For example if the claim amount in a recovery application is Rs. 1000 crores, the minimum monthly interest will work out to Rs. 10.00 crores. The Borrowers/Guarantors during the pendency of recovery applications impliedly get exemption from payment of accruing interest also due to the absence of any statutory provision in the Act for payment of at least the interest component during the pendency of the Recovery Application.It is pointed out that the honest borrowers pay the interest to the banks on their loans at the contractual rate and with monthly rests. It will be a travesty of justice if those who default in repayment of loan and because of which the banks have to knock the doors of courts and tribunals are allowed any concession in the rate of interest for pendente lite and future period. Due to non-payment of bank loans by the defaulters, the cost of funds increases in the hands of bank because of which on the one hand they are compelled to charge higher rate of interest from the honest borrowers and at the same time banks also reduce the interest paid on the deposits of the public i.e. saving bank account and fixed deposit account. In this manner, the NPA percentage of the banks increases which adversely affects the rating of the Banks/Financial Institution at international level.It is the humble opinion of the author that the Section 19(20) RDB Act, 1993 is required to be amended so as to provide the following-A provision should be made requiring the defendants in pending OAs for payment of interest on the claim amount on monthly basis at least at the rate of 10% per annum which amount may be kept in an interest bearing no lien accounts which will be dealt in accordance with the final outcome of the OA. In case there are several defendants, the payment liability during the pendency of OA of each defendant should be allowed to be determined by the DRT.That as a general rule, the pendelite and future interest should be awarded at contractual rate at compound basis, but in exceptional circumstances, discretion may be given to the DRTs to reduce the rate of interest for reasons to be given in writing subject to a rider that such deduction in rate of interest shall be available only if the entire decretal amount is paid within such time as may be fixed by the DRT in its judgment but not exceeding 2 years from the date of the judgment.(Pragati Aggarwal is an associate of Delhi-based law firm, R P Agrawal & Co)https://www.livelaw.in/know-the-law/sarfaesi-debt-recovery-banking-laws-recent-important-decisions-159785?infinitescroll=1TAGS#CODE OF CIVIL PROCEDURE#CPCPENDENTE LITE#BANKING LAW#RECOVERY OF DEBTS DUE TO BANKS AND FINANCIAL INSTITUTIONS ACT#BANKING REGULATION ACTNext Story KNOW THE LAWWhen Can A Citizen's Right To Travel Abroad Be Restricted? Explained With JudgmentsSofi Ahsan19 Oct 2022 5:25 PMWhen Can A Citizens Right To Travel Abroad Be Restricted? Explained With JudgmentsSource: Sana Irshad Mattoo/Instagram The Pulitzer-winning photojournalist Sana Irshad Mattoo on Tuesday said she was again stopped from travelling to New York. She was on her way to the US to receive the international award when she was stopped by the immigration authorities at New Delhi's Indira Gandhi International Airport. In a tweet, she said she was holding a valid US visa and travel ticket.The 28-year-old was also stopped from travelling to the US in July. Since 2019, the right to travel abroad of a number of Kashmiri journalists including Aakash Hassan, Gowhar Geelani has been restricted by the government. In March this year, journalist Rana Ayyub was also stopped by the immigration authorities and prevented from boarding a flight to London. Chair of Board at Amnesty International India, Aakar Patel too was stopped from leaving India at Bangalore airport in April.While Ayyub and Patel's right to travel was restricted purportedly in connection with the pending cases against them and they subsequently got relief from the courts in Delhi, it is not clear whether Mattoo has any pending FIR against her.Live Law explains the guidelines which govern the issuance of Look Out Circulars, that are employed to prevent a person from travelling abroad, and decisions of various courts in this regard.Article 21The right to travel is a part of personal liberty under Article 21 of the constitution. The Supreme Court in April 2019 said, "The right to travel abroad is an important basic human right for it nourishes independent and self-determining creative character of the individual, not only by extending his freedoms of action, but also by extending the scope of his experience." However, as is well settled, even fundamental rights can be restricted "according to the procedure established by law".The Passport Act and Lookout Circulars (LOCs)The 1967 Act provides for issuance of passports and travel documents. Under Section 10A of the Act, the passport or travel documents can be suspended in certain cases by the central government "in the interests of the sovereignty and integrity of India, the security of India, friendly relations of India with any foreign country, or in the interests of the general public". The departure of a person can be prevented by an imigration authority on receiving intimation from the designated authority or central government.The Centre in 1979 issued guidelines for issuance of look out circulars in respect of the arrival and departure of people whose travel the investigating agencies want restricted or banned. The guidelines were amended in 2010 in pursuance of Delhi High Court's judgements in Vikram Sharma vs Union of India and Sumer Singh Salkan versus Asstt. Director & Ors. While there have been many modifications in the guidelines since then, they were reviewed last in February 2021 by the Ministry of Home Affairs.An LOC against a person is opened by the Bureau Of Immigration (BoI) after receiving a request from the competent authority, who are senior officers in the central government or law enforcement agencies. A district magistrate or a superintendent of the police can also get an LOC issued. The criminal courts can also order issuance of LOC. The legal liability of the action taken by immigration authorities in pursuance of the LOC rests with the originating agency, as per the guidelines."Recourse to LOC is to be taken in cognizable offences under IPC or other penal laws. The details … in the enclosed Proforma regarding 'reason for opening LOC' must invariably be provided without which the subject of an LOC will not be arrested/detained".The guidelines make it clear that in cases where there is no cognizable offence under IPC and other penal laws, the LOC subject cannot be detained or arrested or prevented from leaving the country. In such cases, the originating agency can only request that they be informed about the arrival or departure of the subject.However, the guidelines also state that LOCs can be issued and departure can be declined even in such cases which may not be covered under the guidelines, if departure of such person is considered "detrimental to the sovereignty or security or integrity of India or that the same is detrimental to the bilateral relations with any country or to the strategic and/or economic interests of India or if such person is allowed to leave, he may potentially indulge in an act of terrorism, or offences against the State and/or that such departure ought not be permitted in the larger public interest at any given point of time."Till subsistence of the LOC, the immigration authorities are bound to stop the persons against whom it has been issued. "The LOC opened shall remain in force until and unless a deletion request is received by BoI from the Originator Itself," as per the guidelines.The Originator is required keep reviewing the LoCs on quarterly and annual basis and thereafter immediately submit any proposal for deletion to the BoI.Courts on LOCsIn its decision on a petition challenging the LOC issued against a person whose family members are accused in a case being probed by the Central Bureau of Investigation and Enforcement Directorate, the Delhi High Court on July 4 said, "unless a citizen is suspected to be involved in the commission or facing investigation or trial on the accusation of offences which are cognizable under the Indian Penal Code or other Statutes, the citizen can neither be detained, arrested or prevented from leaving the country and the originating agency can only seek intimation of his arrival and/or departure."Justice Mukta Gupta in the order observed that when it comes to 'LOC of intimation', the authorities at the airport or any other port of departure or arrival "cannot restrain or detain the person on the pretext that intimation of his arrival or departure is required to be given to the originating agency which would indirectly serve as a detentive/ preventive LOC."The court made the observations after interpreting the guidelines or Office Memorandum dated 27th October, 2010 of the MHA. However, the OM issued in February 2021 makes it clear that departure of a person from India can be declined in exceptional cases, even in absence of FIR.Punjab and Haryana High Court on April 5 said the guidelines do not provide for supply of the LOC to the person against whom it has been issued. The non-supply of reasons for issuing LOC , and absence of a post decisional hearing to the subject of the LOC, is not just, fair and reasonable procedure, said the court, while holding it to be violative of Article 21 of the Constitution of India."It may be that before issuing the LOC the respondent [authorities] may not wish to issue a prior notice to the subject of the LOC like the petitioner because there is every possibility that, after receiving such notice, the subject may clandestinely leave the country," said the court.However, it further said: "But we see no impediment to give a post decisional opportunity to the petitioner by supplying to the subject of LOC, the copy of the LOC, and the reasons for issuing it so that the subject of the LOC can take legal recourse to challenge it."The Karnataka High Court in a judgement passed on August 24 said the statutory sanction for issuance of LOC can be traced to Section 10A and 10B of the Passports Act. The object for issuance of LOC is to ensure that the subject of LOC becomes available for interrogation, trial or any inquiry, it said.The court rejected a contention that a notice ought to be issued to the subject of the LOC prior to issuance of LOC. However, it added: "At the time when he is stopped and handed over to the originator, he is, in the considered view of this Court, entitled to know why his travel is being stopped with a copy of the LOC handed over to his hands".On January 12, Justice Rekha Palli of Delhi High Court rejected the Centre's argument that a writ court under Article 226 of the Constitution of India should not review the decision to issue LOC. "In fact, in case it is found that the decision of the authorities is without application of mind to the relevant factors, the Court can, and in fact, should come to the rescue of the individual," said the courtThe court also said, "the issuance of a LOC is an extremely severe step and when purportedly issued in exceptional circumstances, on the ground of the departure of the person being 'detrimental to the economic interests of India', the authorities must tread with caution. Once this Clause itself is meant to be used in exceptional circumstances, it cannot be permitted to be used in such a mechanical manner, as in the present case".Relying on Delhi High Court's 2010 decision in Sumer Singh Salkan versus Asstt. Director & Ors, the Karnataka High Court on August 29 in 2019, said: "recourse to lookout notice can be taken by the investigating agency in cognizable offences under IPC or the other penal laws, where the accused was deliberately evading arrest or not appearing in the trial court despite NBWs and other coercive measures and there was likelihood of the accused leaving the country to evade trial/ investigation."Quashing the LOC against journalist Rana Ayyub, the Delhi High Court on April 4 said, "The impugned LOC is accordingly liable to be set aside as being devoid of merits as well as for infringing the human right of the Petitioner to travel abroad and to exercise her freedom of speech and expression".In Aakar Patel's case where the LOC was issued by CBI, the Special Judge (PC Act) on April 16 said, "In the scheme of CBI Crime Manual, provision and procedure for LOC is introduced to deal with absconders. It is with respect to the absconding accused that when suspicion arises that the absconding accused may flee from the country, LOC can be issued to thwart any such attempt. So a wanted accused, absconding to join investigation is the pre-condition for issuance of LOC during investigation."The court in that order also said that investigation has been complete in the case against him and the matter is at the stage of consideration of the charge-sheet by the trial court for cognizance. "Once the matter is in the Court, circumstances warranting opening of LOC will arise only when the respondent accused does not appear in the Trial Court despite NBWs and other coercive measures," said the Special Judge.The trial court order has been challenged by the CBI before Delhi High Court. Issuing notice on CBI's plea, the high court on May 13 said the trial court observations will not come in the way of implementation of the guidelines issued by MHA last year. CBI in its petition has called the issuance of LOC a "lesser form of coercive measure" to ensure that an accused is available to the face the process of law. The agency has also argued that it draws the power to issue an LOC from the CBI manual.Agreeing with an argument that the Office Memorandum on LOCs cannot be described as "law", Justice Rajiv Shakdher in 2015 said, "This submission, I must confess, has much merit in view of the decisions of the Supreme Court both in Maneka Gandhi case as well as in the case of A.K. Gopalan. Both judgements take the view that "law" referred to in Article 21, would mean "enacted law"."TAGSRIGHT TO TRAVEL ABROADLOOK OUT CIRCULARSINTERPRETATIONFOREIGNERS REGISTRATION OFFICEIMMIGRATIONDELHI HIGH COURTPUNJAB AND HARYANA COURTKARNATAKA HIGH COURTHIGH COURTSUPREME COURTloading....SIMILAR POSTS+ VIEW MOREWhen Can A Citizens Right To Travel Abroad Be Restricted? Explained With JudgmentsWhen Can A Citizen's Right To Travel Abroad Be Restricted? 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Wade Overruled : What Does Indian Law Say On Abortion?25 June 2022 1:14 PMLAW FIRMS+ MORESL Partners Represents Ratnamani Metal And Tubes In Acquisition Of Majority Stake In Ravi Technoforge Private LimitedSL Partners Represents Ratnamani Metal And Tubes In Acquisition Of Majority Stake In Ravi Technoforge Private LimitedLATEST NEWS+ MORE1BREAKING: Delhi High Court Orders Blocking Of Judicial Officer's Sexually Explicit Video On Social Media2Relief For Another Transgender Candidate As MAT Directs State To Provide 'Third Gender' Option For Constable Post By Dec 43'Seats Shouldn't Be Increased': Petitioner Concludes Arguments Before Supreme Court In Plea Challenging J&K Delimitation Orders4Bombay High Court Questions ASI On Steps Taken To Prevent Paid 'VIP Darshan' At Trimbakeshwar Temple5Madras High Court Asks Schools To Frame Anti-Sexual Harassment Policy, Provide Reporting & Redressal Mechanism To Students61Km ESZ Rule Won't Apply To Tungareshwar Wildlife Sanctuary Near Mumbai : Supreme Court7'Courts Created To Adjudicate Substantial Interest Of Parties, Not Dispose Cases In Numerical Quantity': Kerala High Court8'Abject Failure' : Kerala High Court Criticises CBI Probe Of Death Of Malabar Cements Whistleblower; Asks Director To Form New Team For Further Investigationलाइव लॉ हिंदी+ MOREसुप्रीम कोर्ट ने एनएमडीसी को पन्ना में हीरा खनन फिर से शुरू करने की अनुमति दीसुप्रीम कोर्ट ने एनएमडीसी को पन्ना में हीरा खनन फिर से शुरू करने की अनुमति दीअसाधारण परिस्थितियों के अलावा अदालतों को विभागीय जांच में दर्ज तथ्यों के निष्कर्षों में हस्तक्षेप करने से बचना चाहिए : सुप्रीम कोर्टअसाधारण परिस्थितियों के अलावा अदालतों को विभागीय जांच में दर्ज तथ्यों के निष्कर्षों में हस्तक्षेप करने से बचना चाहिए : सुप्रीम कोर्टपूर्व आईपीएस अधिकारी संजीव भट्टसंजीव भट्ट ने सुप्रीम कोर्ट का रुख किया, गुजरात हाईकोर्ट में दोषसिद्धि के खिलाफ उनकी अपील की सुनवाई तब तक टालने की मांग की जब तक कि अतिरिक्त सबूत पेश करने की याचिका पर फैसला नहीं हो जातासीएए तमिल वर्ग के खिलाफ; श्रीलंका के तमिल शरणार्थियों का बहिष्करण तर्कहीन : डीएमके ने सुप्रीम कोर्ट को बतायासीएए तमिल वर्ग के खिलाफ; श्रीलंका के तमिल शरणार्थियों का बहिष्करण तर्कहीन : डीएमके ने सुप्रीम कोर्ट को बतायाबिलकिस बानो केसगैंग रेप और मर्डर के 11 दोषियों की रिहाई के खिलाफ बिलकिस बानो ने सुप्रीम कोर्ट का दरवाजा खटखटायाINTERNATIONAL+ MORE1Banning Conditional Sentences For Certain Offences Is Constitutional: Canada Supreme Court Holds In 5:4 Majority2Canada Supreme Court Says Mandatory And Lifetime Registration On Sex Offender Registry Unconstitutional3Indian-American Attorney Arun Subramanian Nominated As US District Judge In New York By President Joe Biden4Ketanji Brown Jackson Sworn In As US Supreme Court Justice- First Black Woman In Court's HistoryENVIRONMENT+ MORE1Supreme Court Dismisses Plea Against ₹64 Lakh Penalty On Municipal Body For Dumping Solid Waste In Wular Lake2NGT Should Test Bonafides & Credentials Of Applicants Before Passing Orders Having Far Reaching Effect: Supreme Court3'Lack Of Good Governance': NGT Slaps ₹35 Cr Penalty On J&K Admin For Doodh Ganga Pollution4Grant Of Ex Post Facto Environmental Clearance Permissible In Exceptional Circumstances : Surpeme CourtJOB UPDATES1. Chairman Vacancy At Permanent Lok Adalat For Public Utility Services (PLAPUS), Andhra Pradesh2. Winter Internship Program At State Legal Services Authority, UT., Chandigarh3. Deputy Legal Advisor Vacancy At The Commission For Air Quality Management In National Capital Region And Adjoining Areas4. Manager Vacancy At Administrative Staff College Of India5. Legal Assistant Vacancy At National Institute Of Technology, Tiruchirappalli+ VIEW MORE© All Rights ReservedWho We AreCareersAdvertise With UsContact UsPrivacy PolicyTerms And Conditions