https://www.taxtmi.com/caselaws?id=457247 The Punjab and Haryana HC quashed LOCs issued against a petitioner who was a guarantor for defaulted loans. The court held that the right to travel abroad under Article 21 requires a very high threshold to deny, which was not met since the petitioner committed no cognizable offense. LOCs are meant for persons evading arrest in criminal cases, not civil loan defaults. The court distinguished between criminal offenses and mere commercial defaults, ruling that loan guarantor status alone cannot justify travel restrictions. The petitioner was permitted to travel abroad for two months upon depositing Rs. 50 lakhs as security, to be returned upon producing passport after return to India. en-us Fri, 30 Sep 2022 00:00:00 +0530 Thu, 12 Sep 2024 20:11:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=457247 The Punjab and Haryana HC quashed LOCs issued against a petitioner who was a guarantor for defaulted loans. The court held that the right to travel abroad under Article 21 requires a very high threshold to deny, which was not met since the petitioner committed no cognizable offense. LOCs are meant for persons evading arrest in criminal cases, not civil loan defaults. The court distinguished between criminal offenses and mere commercial defaults, ruling that loan guarantor status alone cannot justify travel restrictions. The petitioner was permitted to travel abroad for two months upon depositing Rs. 50 lakhs as security, to be returned upon producing passport after return to India. Case-Laws IBC Fri, 30 Sep 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=457247