Amend Rules to obligate surrender of Passport to Bank for Loans, Madras High Court

With a view to preventing loan defaulters from fleeing the country, the Madras High Court recently suggested that the Government should consider amending the Passport Act and Rules so that borrowers are obligated to surrender their passport to the bank or financial institution providing the loan..The order passed last week by Justice S Vaidyanathan states,.“It is suggested that in order to prevent the persons, fleeing away from justice and migrating to an alien country, after availing loan from the Finance Company / Bank and without repaying it, the Government is expected to modify the rules, regarding surrender of Passport of the person availing loan, to the concerned Institution, from whom loan is availed so that the jurisdictional Court may be aware of non-repayment of the loan amount and person will not be allowed to travel abroad without the knowledge of such financial institutions.“.The Court goes on to recommend that if the loan is not paid off, coercive measures taken in response could include the temporary cancellation of the defaulter’s passport..“It can also be made clear that till the loan is cleared, the Passport will not be handed over to the person and in case of failure in repayment of amount, the Passport may be temporarily cancelled. Passport Act and Rules can also be amended to the effect that in case of renewal of Passport, necessary endorsement should be obtained from the Banks / Financial Institutions or suitable orders should be obtained from the jurisdictional Court or appropriate Forum.“.The suggestion was made while dismissing a petition filed by a former Anganwadi employee who had approached the Court for reinstatement to service, about seven years after her employment was terminated..The petitioner was initially suspended from service in view of complaints regarding frequent absences and other irregularities. During her suspension period, the petitioner also travelled to Singapore without intimating the same to her employer. This, in turn, served as a ground for her permanent dismissal from service..The petitioner, however, approached the Court challenging her termination as having been made in violation of natural justice principles. The petitioner denied having travelled abroad and contended that her termination was not communicated to her, but rather only posted on a notice board..The Court was eventually informed that not only had she travelled abroad, but that she had left the country on a false passport in the name of her relative. Apprehending trouble, a request was made to withdraw the petition from the Court. While the withdrawal request was initially allowed, the Court recalled its order allowing the petition’s dismissal as withdrawn after it was informed of the fraud played by the petitioner..In view of the same, the Court not only dismissed the petition but also sentenced the petitioner to a week’s simple imprisonment. Additionally the Court also directed the revocation of the ration card of the petitioner and the relative who supplied her with the false passport. The petitioner has also been ordered to inform the concerned jurisdictional police if she chooses to change her place of residence..The false passport used by her was directed to be destroyed. Further, the Court observed that the Passport authorities were at liberty to proceed against the petitioner for having left the country on a fake passport, as well as the relative for supplying a false passport..The order was passed in the presence of the petitioner, who was produced before Court after a non-bailable warrant for her presence was issued by the Court..Read the order: