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DELHI HIGH COURT
PRATHIBA M.SINGH
Brij Bhushan Kathuria – Appellant
Versus
Union of India – Respondent
| Table of Content |
|---|
| 1. challenge against look out circular (Para 2 , 3 , 4) |
| 2. arguments concerning the loc validity (Para 5 , 7 , 12) |
| 3. respondent's claims on petitioner's role (Para 9 , 14) |
| 4. court's observations on loc procedures (Para 10 , 11 , 13) |
| 5. established legal definitions on loc issuance (Para 15 , 16 , 17) |
| 6. decision to suspend loc with conditions (Para 18 , 19 , 20) |
JUDGMENT
Prathiba M. Singh, J. (Oral)--This hearing has been done through Video Conferencing.
CM APPL. 10253/2021 (for interim stay)
2. The Petitioner in the present petition has challenged the Look Out Circular (hereinafter, `LOC') issued against him by Respondent Nos 3 and 4 i.e., the Ministry of Corporate Affairs (hereinafter, `MCA') and the Serious Fraud Investigation Office (hereinafter, `SFIO') and prays for the same to be quashed.
3. The brief background of the matter is that the Petitioner is a Chartered Accountant who was inducted in the Board of M/s Techpro Systems Limited, as a Non-Executive Independent Director, in the Annual General Meeting dated 26th September 2007. The Petitioner is working in Oman and relocated there on 24th October, 2009. He is stated to have resigned from the post of Indepe
Look Out Circulars cannot be issued without a cognizable offense, violating fundamental rights, as established by the relevant Office Memorandum.
The Court considered the question of whether the Look Out Circular deserves to be stayed and suspended its operation based on the absence of a flight risk and specific conditions imposed on the Petit....
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 main legal point established in the judgment is that the issuance of Look Out Circular (LOC) should be based on cognizable offences, and the guidelines for issuance of LOC should be followed. The....
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.
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....
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.
Look Out Circulars must adhere strictly to legal frameworks and cannot deny fundamental rights without justifiable grounds.
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