Passport – Debtors Recovery Tribunal directions for surrender of guarantor’s passport in recovery proceedings – Illegal
Passport – Debts Recovery Tribunal has no powers to impound or confiscate in recovery proceedings and not to leave the country – Section 22(2)(h) read with Section 19(25) of Recovery of Debts Due to Banks and Financial Institutions Act, 1993
W.P.No.26333 of 2023 (GM-DRT) of Nitin Shambhukumar Kasliwal Vs. Debt Recovery Tribunal and another
The petitioner was guarantors to various lenders for the secured loans. The lender-companies initiated proceedings before the Debts Recovery Tribunal for repayment, attachment and sale of properties of several companies including the petitioner.
On 16.4.2025, the Tribunal passed an order on the application of lenders for seeking retention of the petitioner’s passport. The application of the petitioner for revocation of that order was dismissed.
On 15.4.2016, the petitioner surrendered his passport before the Tribunal. On 25.7.2016, the Tribunal passed an order that the petitioner can take his passport as and when required for foreign travel subject to furnishing itinerary.
On 2.12.2016, the petitioner sought passport for renewal. However, this was rejected by the Tribunal.
HELD that the direction to surrender the passport and to take passport as and when required amounts to “impounding” the passport. Section 22(2)(h) of the Act of 1993 does not empower the Tribunal to impound the passport. Issuance of passport and its impounding is dealt with by the special enactment of Passports act, 1967. It will prevail over the powers of the Civil or Criminal Court to retain or impound a passport under Section 102 or Section 104 of the Cr PC. WP is allowed.
Neither the Police nor the Criminal Court invoking powers under Section 102 or Section 104 of Cr PC has no powers to seize and impound the passport. It can be done only under Section 10 of the Passports Act, 1967. Such a power is not available to the Tribunal.
