Kovuru Rajgopal Reddy v. 1. UCO Bank

Petition Under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to pass an order or orders, direction or writ more particularly one in the nature of Writ of Mandamus to declare the actions of Respondents in issuing Look Out Circular against the Petitioner i.e., Kovuru Ralgopai Reddy S/o. Subba Raghava Reddy Kovuru, holding Passport No. 24388716 from travelling abroad on 03.08.2021 as illegal and contrary to law and in violation of guidelines issued by the Home Affairs, Union of lndia vide Office Memorandum dated 22.02.2021 , as the same is an abuse of authority and process of law and consequently quash the Look Out Circular issued by the Respondent No.4 on the instance of Respondent No.1 . /. l.A.NO:1 OF 2022 Petition Under Section 151 CPC praying that in the circumstances stated ln the affidavit filed in support of the petition, the High Court may be pleased to suspend the operation and effect of the Look Out Circular or any other LOC issued against the Petitioner, pending disposal of the main writ petition. l.A.NO;2 OF 2022 Petition Under Section 151 CPC praying that rn the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to direct the Respondents to consider the Email dated 2't.09.2022 and provide a copy of LOC and other related documents, pending disposal of the maan writ petition. l.A.NO:3 OF 2022 Petition Under Section 151 CPC prayinq that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to direct the Respondents to permit the Petitioner to travel to Dubai in the first week of November. pending disposal of the main writ petition. |.A.NO: 1 OF 2024 Petition under Section '151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend the operation and effect of Look Out Circular 'LOC' issued by the respondents against the petitioner (i.e., Kovuru Rajgopal Reddy holding passport No. 24388716) from 26.08.2024 to 30.082024, pending disposal of the writ petition |.A.NO:2 OF 2024 Petition Under section 151 cPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High court may be pleased to suspend the operation and effect of Look Out Circular 'LOC, issued by the I respondents against the petitioner (i.e.. Kovuru Rajgopal Reddy holding passport No. 24388716) from 18.10.2024 to 27.10.2024, pending disposal of the writ petition. |.A.NO:3 OF 2024 Petition under Section 1 51 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend the operation and effect of Look Out Circular 'LOC' issued by the respondents against the petitioner (i e, Kovuru Rajgopal Reddy holding passport No. 24388716) from 2311212024 to 2911212024, pending disposal of the writ petition. Counsel for the Petitioner : SRI SRINIVASA RAO BODDULURI Counsel for the Respondent Nos.1 to 3 : Ms. M.SHALINI Counsel for the Respondent No.4 : SRI B.RAGHAVENDRA The Court made the following ORDER ._Ttftr, -t!- ',/ r IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THE HON'BLE SRIJUSTICE NAGESH BHEEMAPAKA WRIT PETITION No.40405 of 2022 DATE OF ORDER:- 15.12.2025 BETWEEN Kovuru Rajgopal Reddy, S/o. Kovuru Subba Raghava Reddy, Rl/o. Hyderagbad. AND UCO Bank, Assets Management Bank, Hyderabad & 3 others. Petitioner Respondents ORDER:- 1. This Writ Petition is filed declaring the action of respondents in isSuing Look Out Circular against the petitioner from travelling abroad and holding his Passport No.24388716 on 03.08.2021, as illegal and violation of guidelines issued by Union of lndia vide Office Memorandum dated 22.02.2021 and consequently to direct respondent No.4 to quash the Look Out Circular issued by him at the instance of respondent No.1.

2. Heard Sri Srinivas Rao Bodduluri, learned counsel for the petitioner as well as Ms.M.Shalini, learned Standing Counsel for respondent-Bank. Perused the record. 2 N8K.J Wp-4O405-20&

3. The case of the petitioner is that he was engaged in the business of execution of irrigation and civil construction works and has approached respondent No.2 for availing cash credit facility and the respondent No.2 has sanctioned loan of Rs.4B5 lakhs but released only Rs.475 lakhs. The petitioner had paid the interest as well as principle amount regularly. But due to unfavourable market conditions, the petitioner's company ran into temporary liquidity due to which he could not pay the interest due to the respondent- bank and hence the credit facility of the company was declared as NPA. Aggrieved by the same, the petitioner filed W.P.No.44O1 ot 2017 and as per the orders passed in the said writ petition, the company had deposited an amount of Rs.175 lakhs towards partial adjustment of Bank dues. Further, though the petitioner's company has submitted OTS settlement of Rs.260 lakhs in full and final settlement of the companies due of Rs.329 lakhs, the respondent-Bank has declined the said offer. While the things stood thus, the petitioner was scheduled to travel to lVlaldives on 03.08.2021 for business conference, but he was prevented from boarding the flight at Kampegouda lnternational Airport at Bangalore on the ground that a Look out circular (LOC) was issued against him. lt is stated that the petitioner was not provided with a copy of Look Out Circular and that there are no criminal proceedings pending against him and that in 3 Wp 40405-202& order to raise funds, the petitioner need to attend important business meeting in Dubai during 1"t week of November and as the petitioner is not being allowed to travel abroad, he filed the present writ petition seeking to suspend the operation of Look Out Circular issued against the petitioner.

4. Learned counsel for the petitioner contended that the petitioner was not provided with the copy of the said LOC which is clear contravention of the Office Memorandum daled 22.02.2021 issued by Ministry of Home Affairs. Learned counsel also referred to Clause 6(L) of the said Memorandum which reads as follows:- "6(L) ln exceptional cases, LOCs can be issued even in such cases, as may not be covered by the guidelines aboye, whereby depafture of a person from lndia may be declined at the request of any of the authorities mentioned in clause (B) , if it appears to such authority based on inputs received that the depafture of such person is detrimental to the sovereignty or security or integrity of lndia or that the same is detrimenta! to the bilateral relations with any country or to the strategic and /or economic interests of lndia or if suchperson 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 permifted in the larger public interest at any given point in time."

5. ln the instant case, there are no criminal proceedings against the petitioner nor there is any investigation by the State Police, CBI or Enforcement Directorate initiated against the petitioner. Further, 4 NBK,J wp-40405_204 despite multiple oral and written requests, the respondent -Bank has not furnished a copy of LOC nor disclosed any reasons for its issuance. Mere pendency of recovery proceedings under SARFAESI Act or inability to adhere to repayment schedule does not by itself meet the threshold of economic detriment to the nation. Learned counsel also submitted that the petitioner has discharged the loan liability through a one time settlement, pursuant to which the respondent -Bank had issued No due Certificate on 08.'12.2025 and therefore, the dlspute between the petitioner and the respondents - Bank had got resolved. In order to substantiate his conlention, learned counsel had enctosed a copy of letter dated 08.12.2025 issued by UCO Bank which clearly depicts that as per the One Time Settlement of M/s.Blue Rocks lndia Projects Private Limited, the full and final amount has been received by the Bank by settling in compromise and there are no dues on account of the petitioner and the account of the petitioner's company is closed.

6. On the other hand, Ms.M.Shalini, learned Standing Counsel for respondent -Bank has fonvarded a copy of email dated

12.12.2025 received from AMB (Assets Management Bank), Hyderabad, which discloses that the Bank has received the One Time Settlement of Rs.7.B0 Crores and delayed interest of Rs.10.00 I I I I I Y I i To SA BS NBK,J wp _40405-2024 Lakhs from the petitioner and hence, they do not have any objection from withdrawing the case against the petitloner. lt is further mentioned that they have requested their higher officials for withdrawal of LOC against the petitioner/borrower. 7 . ln view of the foregoing discussion and considering the fact that the respondent -Bank has received its OTS from the petitioner and requested the higher officials for withdrawal of LOC, this Court do not find any reason for continuation of LOC issued against the petition er B. Hence, the Writ Petition. is disposed of directing the respondent authorities to suspend the operation of Look Out Circular (LOC) issued against the petitioner so as to enable him to travel to Dubai in connection with business schedule. There shall be no order as to costs.

9. Miscellaneous petitions pending, if any, shall stand closed. //TRUE COPY// \ SD/-MOHD. ISMAIL EPUTY REGISTRAR SECTION OFFICER 1 Hills, Hyderabad - 500034

1. The UCO Bank, Assets Management Bank, 6-3- , Ground Floor, Navabharath Chambers Raj Bhavan Road, Som Uda, Hyderabad-500082 2. The UCO Bank, Zonal Office, 8-2-624, Ground Floor, Road No. 10 Banjara 3 The UCo Bank. coroorate Head office 10, B T M sarani, Korkatta 700001. 4 The Commissioner. burgaq gjlqrligAb., E""i'BLck-Vil, Level _V, Sector_ _ 1 R K Puram. New Dethi-l .10066 5 One CC to SRt SR|N|VA.SA RAO BODDULURT, Advocate tOpUCl 9 9nu CC to Ms. M SHALtNI, novocate r5F[;i'" ^"' 7 one cc to SRt e nncnAVer.ron"A,'il;;iJ (opuc) B. Two CD Copres -)L*' \ I HIGH COURT DATED:1511212025 tUR THE S o 1 3 - 1.tl 2026 o,: * 'a') \2\ o -) t ORDER WP.No.40405 of 2022 DISPOSING OF THE W.P WITHOUT COSTS. tO KE al" l>-e I I I I I I