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ILESH J. VORA
Manoj Mahendra Somani – Appellant
Versus
Union Of India – Respondent
JUDGMENT :
1. The applicant is before this Court calling in question a look out circular issued against him which restrains him from travelling abroad.
2. The applicant – Manoj Mahendra Somani, was stopped by the immigration officer at the Ahmedabad Airport, when he was scheduled to travel Dubai on 24.11.2021 and was informed orally that, look out circular had been opened in his name and therefore, he could not be permitted to travel at Dubai.
3. Brief facts that lead to the applicant to file this application, as borne out as pleadings are as follows:
3.1 The applicant was erstwhile Director of Gopala Polyplast Pvt Ltd Company. The company had availed a Cash Credit Facilities from the respondent no. 3 – Bank of Baroda. The applicant was one of the Directors, who had offered guarantee in his personal and individual capacity along with others for the said credit facilities. The company committed default in repayment of credit facilities. The account turned into NPA on 07.11.2019. The bank noticed the instances of diversion of funds. The forensic audit report dated 09.02.2019 was remained inconclusive, as a result, the respondent no.3 Bank sought a second forensic audit report, which was
Look Out Circulars must be justified by substantial evidence and cannot infringe on fundamental rights without clear, objective criteria.
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....
Lookout Circulars cannot be issued solely based on non-payment of loans without serious criminal allegations; such actions infringe upon the fundamental right to travel under Article 21.
The central legal point established in the judgment is that the issuance of Look Out Circulars must be based on exceptional circumstances and must conform to constitutional standards, including the r....
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.
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.
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.
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