Whether insolvent is disqualified for passport?
sridhar pasumarthy
(Querist) 29 November 2012
This query is : Resolved
Respected Experts,
I filed a debtor Insolvency Petition on behalf of my client in the year 2003. The same was allowed adjudicating my client as Insolvent in the year around 2006.
My client/insolvent applied for a passport recently. Police people denying to given N.O.C. on the ground that he is not entitled for a passport for being declared as Insolvent. Order copy of I.P. was also supplied to the police. Though, he never involved in criminal case, police are not willing to issue NOC.
In spite of my thorough search, I found no where such a disqualification for an Insolvent except for contesting local elections etc. under Insolvency Act.
Pls clarify my doubt "whether an insolvent is disqualified for a passport?"
Pls advice me what is the recourse in the above situation?
Thanks in advance.
prabhakar singh
(Expert) 29 November 2012
Dear sridhar pasumarthy!
Have you heard of a term INCAPACITY?
ONE WHO IS DECLARED INSOLVENT BY COURT LOOSES
HIS JURISTIC PERSONALITY AND ,IN MY VIEW,CAN NOT EVEN APPLY FOR PASSPORT SINCE HE IS NOT A JURISTIC PERSON IN THE EYE OF LAW.
Kiran Kumar
(Expert) 29 November 2012
Read Section 6 of The Passports Act, 1967 carefully.
It will give you a direction for your case.
In case your grouse is not solved by the concerned authorities, you may approach HC by way of Writ Petition.
Kiran Kumar
(Expert) 29 November 2012
6. Refusal of passports, travel documents. etc.
(1) Subject to the other provisions of this Act, the passport authority shall refuse
to make an endorsement for visiting any foreign country under clause (b) or clause
(c) of sub-section (2) of section 5 on any one or more of the following grounds, and
no other ground, namely: -
(a) that the applicant may, or is likely to, engage in such country in activities
prejudicial to the sovereignty and integrity of India:
(b) that the presence of the applicant in such country may, or is likely to, be
detrimental to the security of India;
(c) that the presence of the applicant in such country may, or is likely to,
prejudice the friendly relations of India with that or any other country,
(d) that in the opinion of the Central Government the presence of the applicant
in such country is not in the public interest.
(2) Subject to the other provisions of this Act, the passport authority shall refuse
to issue a passport or travel document for visiting any foreign country under clause (c) of sub-section (2) of section 5 on any one or more of the following grounds, and
on no other ground, namely: -
(a) that the applicant is not a citizen of India.,
(b) that the applicant may, or is likely to, engage outside India in activities
prejudicial to the sovereignty and integrity of India.,
(c) that the departure of the applicant from India may, or is likely to, be
detrimental to the security of India;
(d) that the presence of the applicant outside India may, or is likely to,
prejudice the friendly relations of India with any foreign country;
(e) that the applicant has, at any time during the period of five years
immediately preceding the date of his application, been convicted by a court in India
for any offence involving moral turpitude and sentenced in respect thereof to
imprisonment for not less than two years;
(f) that proceedings in respect of an offence alleged to have been committed by
the applicant are pending before a criminal court in India;
(g) that a warrant or summons for the appearance, or a warrant for the arrest,
of the applicant has been issued by a court under any law for the time being in force
or that an order prohibiting the departure from India of the applicant has been made
by any such court;
(h) that the applicant has been repatriated and has not reimbursed the
expenditure incurred in connection with such repatriation;
(i) that in the opinion of the Central Government the issue of a passport or
travel document to the applicant will not be in the public interest.
Raj Kumar Makkad
(Expert) 29 November 2012
Passport authorities cannot deny for the issuance of the Passport other than the grounds mentioned in section 6 of ibid Act so better to move a petition under Art. 226 & 227 of Constitution against the arbitrary attitude of police authorities.
sridhar pasumarthy
(Querist) 30 November 2012
Thanks to all for your valuable advice.
I have gone through Sec 6 of Passports Act.
There is no restriction for an insolvent under it.
Anyhow, I understood that a Writ of Mandamus will solve the problem.
Raj Kumar Makkad
(Expert) 30 November 2012
You shall file Wrti of mandamus before High Court.
J K Agrawal
(Expert) 30 November 2012
Dear Learned Friends.
What do we mean by Insolvent? Just we try to understand it clearly.
The term generally used in contract act of election act etc is 'undischarged insolvent'.
It means that when a person applies for insolvency in court, the court declares first him to be insolvent. Then take over process of property and other proceedings starts. Then the court hand over his property, debtors and creditors to a person called liquidator and the court discharges him from insolvency.
All it mean that he is insolvent during the proceedings only and not before or afterwords.
Hear in this example, the proceedings completed in 2006 means he was 'undischarged or say declared insolvent' from 2003 to 2006 and not after that.
sridhar pasumarthy
(Querist) 30 November 2012
@ Sri J K Agarwal,
Debtor I.P. was allowed in 2006 and my client was declared as Insolvent. But, I did not mention that proceedings were completer, in my query.
Till today he is an undischarged insolvent as he has not moved any application for discharge. The official receiver has not auctioned the properties and distribute the sale proceeds to the creditors, so far.
Raj Kumar Makkad
(Expert) 01 December 2012
The opinion of Aggarwal wouldn't help you as the same is not applicable in your case so move ahead as already advised.
