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        2022 (3) TMI 1488 - HC - Indian Laws

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        Look Out Circular validity fails without timely extension or concrete material showing flight risk and evasion of investigation A Look Out Circular, as a coercive travel restriction, can continue only if the prescribed conditions for issuance and extension are satisfied on the ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.

                          Look Out Circular validity fails without timely extension or concrete material showing flight risk and evasion of investigation

                          A Look Out Circular, as a coercive travel restriction, can continue only if the prescribed conditions for issuance and extension are satisfied on the material available. The Court found no material showing a valid extension beyond 20.01.2022, and the record did not establish timely approval by the competent authority for continuation. On merits, the materials did not show evasion of summons, avoidance of investigation, or concrete facts making the petitioner a flight risk. The allegations remained at a prima facie stage, so the LOC was held unsustainable and the travel restriction was set aside.




                          Issues: Whether the Look Out Circular continued to remain in force beyond the stated period and whether the petitioner's challenge to its issuance was sustainable on merits.

                          Analysis: The validity and continuation of the Look Out Circular were examined with reference to the governing executive instructions, including the requirement that an LOC is ordinarily valid for one year and may be extended before expiry upon proper approval. No material was produced to show a valid extension beyond 20.01.2022, and the record did not establish that the competent authority had sanctioned continuation in time. On merits, the LOC was issued as a coercive restriction on travel, but the materials placed did not show that the petitioner had evaded summons, avoided investigation, or otherwise satisfied the settled conditions for issuance of such a measure. The allegations remained at a prima facie stage, and there was no concrete material showing that the petitioner was a flight risk.

                          Conclusion: The Look Out Circular was held not to be sustainable on the facts and materials before the Court, and the petitioner's challenge succeeded.

                          Final Conclusion: The restriction on travel was set aside and relief was granted to the petitioner.

                          Ratio Decidendi: A Look Out Circular, being a coercive restriction on movement, can stand only where the prescribed conditions for issuance and continuation are satisfied on the material available, and its legality must be judged on the basis of valid authorization and concrete justification existing at the relevant time.


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                          ActsIncome Tax
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