Look Out Circulars must follow fair procedure and lawful basis; mere loan default or suspicion cannot justify travel restraint.

A Look Out Circular affecting travel abroad engages the right to personal liberty under Article 21 and must rest on lawful authority, fair procedure, and a prima facie basis within the governing guidelines. The Court found that the petitioner was not shown to be an accused in any criminal case, no FIR had been registered, and no material indicated prejudice to sovereignty, security, integrity, bilateral relations, or India's economic interests. It also noted that the LOC had not been supplied despite request and that the bank's request was made mechanically on mere suspicion arising from loan default. On that basis, the LOC was held arbitrary, illegal, unreasonable, and violative of Articles 14 and 21, and was set aside.

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Issues: Whether the Look Out Circular issued against the petitioner at the instance of the bank was liable to be quashed for violation of the petitioner's fundamental right to travel abroad and for want of lawful procedure.

Analysis: The petitioner established the family relationship and the medical need for travel abroad. The Court held that the right to travel outside India is part of personal liberty under Article 21 of the Constitution of India and can be curtailed only by a fair, just and reasonable procedure. The petitioner was not shown to be an accused in any criminal case, no FIR had been registered, and no material showed that her departure would prejudice sovereignty, security, integrity, bilateral relations, or the economic interest of India. The LOC had not been furnished to the petitioner despite request, and the Court found that an uncommunicated adverse order cannot be enforced. The request for LOC was found to have been made mechanically, with non-application of mind, and on mere suspicion arising from loan default, which by itself was insufficient to justify such an extreme coercive measure.

Conclusion: The LOC was held to be arbitrary, illegal, unreasonable, and violative of Articles 14 and 21 of the Constitution of India, and was set aside. The respondents were directed to permit the petitioner to travel abroad to Australia for the stated period.

Ratio Decidendi: A Look Out Circular affecting personal liberty cannot be sustained unless it is supported by lawful authority, fair procedure, communication where required, and a prima facie basis showing that the case falls within the governing guidelines; mere loan default or suspicion is insufficient.

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