Calcutta High Court Quashes LOC in Rs 3,897 Crore Loan Default Case, Upholds Right to Travel

The Calcutta HC held that the mere quantum of an alleged loan default cannot justify restricting a citizen’s right to travel abroad and set aside the Look Out Circular issued against the petitioner.

The case concerned an LOC issued at the instance of the SFIO against a former CEO in connection with an investigation into alleged defaults of Rs 3,897 crore by a company admitted to Corporate Insolvency Resolution Process.

The Court observed that no cognisable IPC case had been registered and neither interim nor final investigation reports had been submitted. 

It found no material to show that permitting travel would affect the probe or harm public interest.