On 17 April 2026, Justice Purushaindra Kumar Kaurav of the Delhi High Court decided a batch of 33 writ petitions challenging look out circulars (LOCs) issued against business persons, directors and guarantors. In Ritu Singal v. Bureau of Immigration (2026 SCC OnLine Del 4825), the Court held that an LOC is a coercive measure of last resort and not a tool for debt recovery. The ruling has been widely discussed since, including in an October 2026 analysis on the SCC Online Blog.
What was decided
The Court held that the right to travel abroad is part of Article 21, and any restriction needs a lawful basis and a fair procedure. Inability to repay a loan is not, by itself, a ground to restrict liberty. Public sector banks do not have authority to seek LOCs under Clause 6(B)(xv) of the 2021 Office Memorandum, and the “economic interests of India” ground in Clause 6(L) must be read narrowly and used only in rare cases presenting a clear and grave threat.
Directors, guarantors, shareholders or relatives cannot be restrained only because of their position; personal involvement must be shown. The issuing authority must apply its own mind and pass a reasoned order instead of simply accepting a request. Bank-originated LOCs were quashed with conditions such as advance intimation of travel; LOCs at the instance of investigating agencies were set aside with conditions; and some petitioners were directed to approach the trial courts where cases were pending.
Why it matters
Many promoters and directors in Noida, Greater Noida and Delhi learn of an LOC only at the airport. This ruling gives a clear framework: the agency that asked for the LOC must justify its necessity and proportionality, and a default or pending inquiry is not enough on its own.
The decision also confirms that relief can be sought from the originating authority or the trial court, not only the High Court. Conditions imposed when LOCs are lifted, such as itinerary disclosure and asset declarations, should be expected and complied with carefully.
Practical points
- Seek a copy or the details of the LOC and identify the originating agency.
- Gather records of cooperation: replies to notices, appearances and documents supplied.
- If the only basis is a loan default, rely on this ruling and the 2021 Office Memorandum.
- Where a charge-sheet or complaint is pending, consider applying to the trial court for permission to travel.
- Comply strictly with any travel conditions imposed, including advance intimation.
Sources: SCC Online Blog, 15 Oct 2026.
For a confidential discussion on look out circulars and travel restrictions, see Criminal Defence and Bail.
General legal information only; not legal advice or solicitation.
