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SHAMPA SARKAR
Vishambhar Saran – Appellant
Versus
Bureau Of Immigration – Respondent
JUDGMENT :
SHAMPA SARKAR, J.
1. The writ petition has been filed by an erstwhile Director of Visa Power Limited (hereinafter referred to as the ‘company in liquidation’). The petitioner contends that he was never a whole time director of the company. The company was undergoing liquidation by order dated October 11, 2018, passed by the learned National Company Law Tribunal, Kolkata Bench. The company had availed of credit facilities from a consortium of banks, with Punjab National Bank (PNB), as the lead Bank. The respondent no.2 was also a part of the consortium. The credit facilities were availed by the company for setting up a thermal power project at Raigarh district of Chhasttisgarh. The loan was sanctioned sometime in March, 2010. Due to en-masse cancellation of coal blocks by the Hon’ble Supreme Court by its order dated September 24, 2014, the thermal plant could not be established and made operational. The whole purpose of the project was to provide power to those contractors who had been given the coal block allocations.
2. In 2017, Bank of Maharastra filed an application under Section 7 of the Insolvency and Bankruptcy Act, 2016 against the company. By an order dated December
The court established that Lookout Circulars cannot be issued solely based on financial default; there must be evidence of criminal activity or a legitimate risk of flight.
The personal liberty and fundamental right of movement guaranteed by the Constitution cannot be curtailed at the behest of BOB when the conditions precedent for making such request for opening an LOC....
Look Out Circulars must be justified by substantial evidence and cannot infringe on fundamental rights without clear, objective criteria.
The fundamental right to travel abroad under Article 21 of the Constitution of India requires a high threshold to be curtailed, and the issuance of Look Out Circulars (LOCs) should be limited to case....
An LOC, which is a coercive measure to make a person surrender and consequentially interferes with his right of personal liberty and free movement, certainly has adverse civil consequences.
Issuance of Look Out Circulars must be based on concrete evidence and cannot be justified solely by the default in loan repayment, as it violates fundamental rights without due process.
The central legal point established in the judgment is that the issuance and renewal of Look Out Circulars (LOC) must align with the legal provisions and principles outlined in the relevant Office Me....
The central legal point established in the judgment is that the right to travel abroad, as guaranteed by Article 21 of the Constitution of India, cannot be curtailed unless a very high threshold is m....
The economic interests of India and bilateral relations with other countries can be valid grounds for the issuance of Look-Out Circulars (LOCs) against individuals, as per the relevant Office Memoran....
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