https://www.taxtmi.com/caselaws?id=469649 A Look Out Circular cannot be used as a routine debt-recovery tool against a guarantor merely because a borrower company defaulted. The Delhi HC held that the right to travel abroad is part of personal liberty under Article 21 and may be restricted only in accordance with law for compelling reasons. Although Office Memoranda allow Look Out Circulars in exceptional cases, including where departure may harm India's economic interests, that power requires facts showing criminality or comparable gravity. As the bank had already pursued civil and recovery remedies and there were no allegations of fraud, siphoning off, or defalcation, the Look Out Circular was held unsustainable and quashed. en-us Tue, 28 May 2024 00:00:00 +0530 Fri, 26 Jun 2026 11:44:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=469649 A Look Out Circular cannot be used as a routine debt-recovery tool against a guarantor merely because a borrower company defaulted. The Delhi HC held that the right to travel abroad is part of personal liberty under Article 21 and may be restricted only in accordance with law for compelling reasons. Although Office Memoranda allow Look Out Circulars in exceptional cases, including where departure may harm India's economic interests, that power requires facts showing criminality or comparable gravity. As the bank had already pursued civil and recovery remedies and there were no allegations of fraud, siphoning off, or defalcation, the Look Out Circular was held unsustainable and quashed. Case-Laws Indian Laws Tue, 28 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=469649