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Issues: Whether the Look Out Circular issued against the petitioner was justified and whether it could be quashed in view of her right to personal liberty, freedom of movement and travel abroad.
Analysis: The impugned Look Out Circular was issued in haste and without the preconditions ordinarily necessary for such a coercive measure. Such a direction interferes with personal liberty and free movement, and is ordinarily justified where a person is evading summons or arrest, or failing to appear despite a non-bailable warrant. The record did not show that the petitioner had avoided the investigating agency; on the contrary, she had appeared when summoned. In those circumstances, the apprehension that she would not cooperate or would not return was held to be unsupported. At the same time, the Court balanced the investigative interest with the petitioner's fundamental rights by imposing safeguards.
Conclusion: The Look Out Circular was quashed. The petition was allowed with conditions regulating travel, cooperation with the investigation, and appearance before the investigating agency on return.
Final Conclusion: The decision protected the petitioner's liberty and travel rights while preserving the investigating agency's ability to proceed with the inquiry subject to conditions.
Ratio Decidendi: A Look Out Circular, being a coercive restraint on liberty and movement, cannot be sustained absent a cogent basis showing evasion of investigation or a real apprehension of non-appearance; where the person has been cooperating, the restraint is liable to be set aside, subject to appropriate safeguards.