Foreign banks cannot engage recovery agents: High Court
KOCHI, JULY 25, 2019 00:00 IST
Says they can initiate action via diplomatic channel
A Division Bench of the Kerala High Court has held that foreign banks or financial institutions cannot engage recovery agents for realising the defaulted loan amount from a borrower in the country.
The Bench of Justice K. Vinod Chandran and Justice V.G. Arun observed on Wednesday that if the failure on the part of the borrower to pay back amounted to a criminal offence in a foreign country, the bank could initiate criminal action against the borrower through the diplomatic channel.
Saudi-returned nurse
The court made the observation while disposing of a writ petition filed by a woman from Kollam who had returned after working as nurse in Saudi Arabia against attempts by the recovery agent of Al-Rajhi Bank, Saudi Arabia, to intimidate her and compel her to pay the defaulted amount. The petitioner said two persons of an agency had threatened her that she would be arrested and taken to Saudi Arabia.
The State Police Chief informed the court that all District Police Chiefs had been instructed to ensure that no unauthorised agents of foreign banks functioned in the State.
KOCHI, JULY 25, 2019 00:00 IST
Says they can initiate action via diplomatic channel
A Division Bench of the Kerala High Court has held that foreign banks or financial institutions cannot engage recovery agents for realising the defaulted loan amount from a borrower in the country.
The Bench of Justice K. Vinod Chandran and Justice V.G. Arun observed on Wednesday that if the failure on the part of the borrower to pay back amounted to a criminal offence in a foreign country, the bank could initiate criminal action against the borrower through the diplomatic channel.
Saudi-returned nurse
The court made the observation while disposing of a writ petition filed by a woman from Kollam who had returned after working as nurse in Saudi Arabia against attempts by the recovery agent of Al-Rajhi Bank, Saudi Arabia, to intimidate her and compel her to pay the defaulted amount. The petitioner said two persons of an agency had threatened her that she would be arrested and taken to Saudi Arabia.
The State Police Chief informed the court that all District Police Chiefs had been instructed to ensure that no unauthorised agents of foreign banks functioned in the State.
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