The Bombay High Court has ruled that public sector banks cannot issue Look Out Circulars (LOC) against default borrowers without a specific statute or law, deeming it a violation of fundamental rights. The court’s decision, made by a division bench of Justices Gautam Patel and Madhav Jamdar, highlights the importance of legal framework in such actions. This verdict comes as a significant development in protecting individuals’ rights against arbitrary measures by financial institutions.
Bombay High Court Deems Public Sector Bank Issuance of Look Out Circulars Unconstitutional
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