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IN THE HIGH COURT OF DELHI AT NEW DELHI
Subramonium Prasad, J.
Pawanjot Kaur Sawhney – Appellant
Versus
Bureau of Immigration & Anr. – Respondents
W.P.(C) 13057 of 2022 & CM APPL. 34819 of 2023 & W.P.(C) 14757 of 2022 & CM APPL. 34814 of 2023
Decided On : 16-08-2023
LOC - Denial of Permission to Travel Outside India - Companies Act, 2013, Section 212(1)(c) - The court discussed the issuance of Look Out Circular (LOC) against the petitioner, who was accused of being involved in siphoning off a substantial amount of about Rs.208 crores in companies under investigation. The court highlighted the principles guiding the issuance of LOC and emphasized the seriousness of economic offences. The court concluded that the petitioner's non-cooperation and the ongoing crucial stage of the investigation warranted the denial of permission to travel abroad.
Fact of the Case:
The petitioner, a 75-year-old OCI cardholder, sought permission to travel outside India after being barred from doing so due to the issuance of a Look Out Circular (LOC) against her. The petitioner challenged the LOC and claimed to have cooperated with the investigation. The court observed the ongoing investigation and the petitioner's non-cooperation, leading to the denial of permission to travel abroad.
Finding of the Court:
The court found that the petitioner's non-cooperation and the ongoing crucial stage of the investigation warranted the denial of permission to travel abroad.
Issues: The issues involved the petitioner's challenge to the Look Out Circular (LOC) and the denial of permission to travel outside India.
Ratio Decidendi: The court's decision was based on the petitioner's non-cooperation, the ongoing crucial stage of the investigation, and the seriousness of economic offences.
Final Decision: The court dismissed the petitions and denied the petitioner's request to quash the LOC and travel abroad.
JUDGMENT
1. W.P.(C) No. 13057/2022 has been filed under article 226 of the Constitution of India by the petitioner praying for a direction to the respondents to furnish the reason for denying permission to the petitioner to travel outside India and provide copies of order/circular (including Look Out Circular)/instructions issued against the Petitioner by the Respondents; further copies of order/instructions/mandate received from any other authority/agency/department and details of the proceedings/prosecution/order pursuant to which, such order/instructions/circulars that have been issued by the Respondents or any other authority.
2. W.P.(C) 14757/2022 has been filed for quashing the Look Out Circular dated 13.06.2022, issued by the Serious Fraud Investigation Office (SFIO).
3. Shorn of unnecessary details, facts leading to filing of the present petition are as follows:
4. The petitioner is about 75 years old and is a citizen and permanent resident of United Kingdom and has been granted registration as an Overseas Citizen of India (hereinafter referred to as OCI) Cardholder, duly approved by the respondents in the year 2011.
5. As per the petitioner, in December, 2021, she travelled to India to meet her ailing brother and stayed till August, 2022. In August, 2022, it is stated that her medical condition of the Petitioner deteriorated and she planned to return to the United Kingdom.
6. On 18.08.2022, upon reaching the Indira Gandhi International Airport, Delhi and on the way to boarding the flight, the petitioner was intercepted by officials of the respondent and the petitioner was informed about revocation of her permission to travel abroad.
7. From 23.08.2022 to 03.09.2022, the petitioner made representations to respondents inquiring about the specific reasons for restraining her from travelling to the United Kingdom. Being unaware of the proceedings initiated against her, the petitioner filed W.P.(C) 13507/2022 praying for directions to the respondent to provide a copy of any such notice/Look Out Circulars that may have been issued against the petitioner and its basis, or any order that has been passed against her, impeding her travel outside India.
8. Notice was issued by this Court and Serious Fraud Investigation Office came to be impleaded in the present petition as respondent no.3.
9. It was brought to notice of this court by the respondents that an LOC dated 13.06.2022 has come to be opened against the petitioner in light of an investigation initiated by the Serious Fraud Investigation Office [hereinafter referred to as SFIO] in terms of an order of 09.03.2022 passed by the Ministry of Corporate Affairs, Government of India. The investigation is said to have been initiated in respect of the affairs of a company, namely, Net4 India Limited and its subsidiaries which include Net4 Network Services Ltd. and Pitetel Communications Pvt. Ltd and its transactions which took place during the years 2015-2016 and 2016-2017.
10. The petitioner, who has been prevented from travelling outside India, suffered a cardiac arrest on 19.09.2022 and she was admitted to Max Super Speciality hospital. The petitioner underwent a coronary angiography on 19.09.2022, and a pacemaker was installed. The petitioner was discharged from hospital on 21.09.2022.
11. W.P.(C) 14757/2022 was filed by the Petitioner challenging the LOC dated 13.06.2022, issued by the SFIO. W.P.(C) 13057/2022 & W.P.(C) 14757/2022 were tagged together and were heard analogously.
12. Relying on the submissions made by the Ld. Counsel appearing for the petitioner, this court conditionally allowed the petitioner to travel abroad vide order dated 09.11.2022. The operative part of the order dated 09.11.2022 is reproduced herein below for reference:
"6. In view of the aforesaid facts, this Court is of the considered opinion that the petitioner is entitled to be granted permission to travel in the interim subject to her providing all details with respect to bank account t
The seriousness of economic offences and the principles guiding the issuance of Look Out Circulars were central to the court's decision.
The court emphasized the authority of the Serious Fraud Investigation Office (SFIO) and the necessity of the Petitioner's presence for effective investigation into the affairs of Gitanjali Gems Limit....
Issuance of Look Out Circular is justified when national interest and potential involvement in economic offences outweigh individual rights.
The issuance of Look-Out Circulars must be justified by valid grounds such as cognizable offences or compelling economic interests; mere allegations without formal charges do not suffice.
The issuance of a LOC must be based on exceptional circumstances and supported by substantial evidence. Mere suspicion is not sufficient to curtail an individual's right to travel abroad.
The court emphasized the importance of considering the economic interest and public funds at stake in cases involving LOCs, and the duty of individuals in positions of responsibility within companies....
The issuance of Look Out Circular against a UK citizen was unconstitutional, infringing on the right to travel without due cause, lacking sufficient grounds under the governing Office Memorandum.
Look Out Circulars must adhere strictly to legal frameworks and cannot deny fundamental rights without justifiable grounds.
The issuance and continuation of a Look-Out Circular must be justified by compelling reasons, specifically regarding flight risk or evading justice; lack of fresh evidence can render it arbitrary.
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