Look out circulars need lawful basis and fairness; cooperative conduct and due notice barred coercive restraint.

A look out circular imposed at the instance of GST authorities was held unsustainable where the petitioner had cooperated with summons, no specific criminal case was shown, and less intrusive means were available to secure attendance. The court treated the circular as a coercive restraint on liberty and travel that required a proper legal basis, which was absent. Cancellation of interim bail and issuance of a warrant of arrest without notice were also found unjustified because the cancellation occurred outside the assigned return date and without due notice. The writ petition succeeded and the circular was set aside, leaving the petitioner free to cooperate through appropriate legal means.

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Issues: (i) Whether the look out circular issued at the instance of the GST authorities could be sustained against the petitioner. (ii) Whether the cancellation of interim bail and issuance of warrant of arrest without notice was justified.

Issue (i): Whether the look out circular issued at the instance of the GST authorities could be sustained against the petitioner.

Analysis: The petitioner had cooperated with the enquiry and had responded to summons. No specific criminal case was shown to have been registered against him for the purpose of investigation. The company's affairs were under the control of the resolution professional after insolvency proceedings, and the authorities were already aware of that position. A look out circular is a coercive measure and cannot be used in an arbitrary manner, especially where the person's appearance can be secured by less intrusive means. The petitioner's right to personal liberty and to travel could not be curtailed without a proper legal basis.

Conclusion: The look out circular was not sustainable and was quashed, in favour of the petitioner.

Issue (ii): Whether the cancellation of interim bail and issuance of warrant of arrest without notice was justified.

Analysis: The interim bail had been cancelled on a date other than the assigned return date and without due notice to the petitioner. In the circumstances recorded, issuance of a warrant of arrest on the ground of non-appearance alone was held unjustified.

Conclusion: The cancellation of interim bail and issuance of warrant of arrest were unjustified, in favour of the petitioner.

Final Conclusion: The writ petition succeeded and the impugned look out circular was set aside, with the petitioner left at liberty to cooperate with the investigating authorities through appropriate means.

Ratio Decidendi: A look out circular, being a coercive restraint on personal liberty and movement, cannot be sustained in the absence of a specific basis for investigation and where the person has been cooperating with the authorities; any restriction must be fair, reasonable, and supported by lawful procedure.

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