Introduction:

The Karnataka High Court, in a recent judgment, ruled that banks lack the authority to withhold an accused person’s passport, even if voluntarily surrendered. The case involved Koshy Varghese, a UK citizen with an OCI card, accused of cheating and criminal conspiracy by Vijaya Bank (now Bank of Baroda). The bank claimed Varghese voluntarily surrendered his passport due to an undertaking but failed to close housing loan accounts. The court, however, held the bank’s retention of the passport and OCI card for four years as illegal, emphasizing the lack of jurisdiction. The judgment underscores the limits of a bank’s power in such matters.

Arguments of Both Sides:

The petitioner, Koshy Varghese, contended that the bank had no right to withhold his passport or OCI card. He argued that the power to withhold a UK passport lies outside the bank’s jurisdiction, and only the Ministry of External Affairs can take action concerning OCI cards. The bank countered, referencing an undertaking where Varghese allegedly deposited his original passport voluntarily. The court scrutinized this claim and asserted that even if voluntarily surrendered, the bank exceeded its authority by retaining the documents for an extended period.

Court’s Judgement:

Justice M Nagaprasanna held the bank’s action as illegal and lacking jurisdiction. The court highlighted that, since the passport was not issued by Indian authorities, no entity in India could withhold or impound it. The OCI card, issued by the Foreigners Regional Registration Office, also couldn’t be withheld by the bank. The judgment criticized the bank’s actions, emphasizing that even if documents were voluntarily handed over, the bank lacked the authority to keep them. The court directed the registry to return the passport and OCI card to Varghese after due verification.