[Cites 2, Cited by 0]
Delhi High Court
Mrs. Sapna Gupta And Anr vs Union Of India And Anr on 25 February, 2026
Author: Purushaindra Kumar Kaurav
Bench: Purushaindra Kumar Kaurav
$~61
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 14855/2024 and CM APPL. 80159/2025
Date of Decision: 25.02.2026
IN THE MATTER OF:
MRS. SAPNA GUPTA AND ANR. .....Petitioners
Through: Mr. Rajul Shrivastav and Mr. Arnav
Chaudhary Advocates.
versus
UNION OF INDIA AND ANR. .....Respondents
Through: Mr. Ripudaman Bhardwaj CGSC with
Mr. Rudra paliwal, GP for UOI.
Mr. Arun Aggarwal and Kajal Ashok
Mishra, Advocates for R-2.
CORAM:
HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV
JUDGEMENT
PURUSHAINDRA KUMAR KAURAV, J. (ORAL)
Admittedly, the Look Out Circulars ('LOCs') have been issued
against the petitioners at the instance of the Bank.
2. There does not seem to be any investigation being carried out by any
of the investigating agencies. The power of the Charmain, Managing
Director or Chief Executive Officer of the Public Sector Banks with respect
to opening of the LOC has been decided by this Court in the case of Vineet
Signed By:AMIT KUMAR Signed
Signing Date:28.02.2026 By:PURUSHAINDRA
17:12:08 W.P.(C) 14855/2024 Page 1 of 3 KUMAR KAURAV
Gupta vs. Union of India, 1. The relevant paragraph is extracted as under:
"28. On the conspectus of the aforenoted decisions and memorandum, it is
seen that the following guiding principles emerge governing the issuance,
continuance, and judicial review of LOC:
(i) LOC constitutes a coercive executive measure having a
substantial impact on the fundamental right to travel, which forms
an integral facet of the right to life and personal liberty guaranteed
under Article 21 of the Constitution of India. Consequently, the
power to issue an LOC must be exercised sparingly, strictly in
accordance with law, and only upon satisfaction of the conditions
prescribed under the governing Office Memoranda;
(ii) An LOC may be issued only in cases involving a cognizable
offence under the relevant statutes, where specific, tangible
material demonstrates that the person concerned is deliberately
evading arrest or judicial process, or that there exists a real and
proximate likelihood of absconding;
(iii) Moreover, the exceptional power under Clause 6 (L) of the
Office Memorandum dated 22.02.2021 is to be narrowly construed
and may be exercised only in rare and compelling cases, where,
the proposed departure of subject poses a clear and grave threat to
the sovereignty, security, or integrity of India, or to its strategic or
economic interests in a national or systemic sense, or the larger
public interest;
(iv) An LOC issued at the instance of Chairman, Managing
Director, or Chief Executive Officers of Public Sector Banks,
would not withstand the scrutiny of law and judicial review. Thus,
as of now, the LOC issued to Public Sector Banks cannot be
sustained and are liable to be quashed;
(v) Courts, in exercise of writ jurisdiction, are duty-bound to
subject the issuance and continuation of LOCs to strict scrutiny,
balancing the legitimate interests of the State with the individual‟s
fundamental rights, and to quash such circulars where the restraint
imposed is found to be arbitrary, disproportionate, lacking in
statutory backing, or violative of the principles of fairness,
reasonableness, and due process. Ultimately, the burden lies
squarely upon the "originating agencies" to justify, the necessity,
proportionality, and legality of the restraint, failing which such
action cannot be sustained. Pertinent to observe that the
continuance of an LOC is not indefinite and must be periodically
reviewed. Where it is evident from the record that the subject has
2026 DHC 1616
Signed By:AMIT KUMAR Signed
Signing Date:28.02.2026 By:PURUSHAINDRA
17:12:08 W.P.(C) 14855/2024 Page 2 of 3 KUMAR KAURAV
cooperated with the investigation, has not evaded the process of
law, and where no further interrogation or presence is
demonstrably required, the continued operation of an LOC would
amount to an unreasonable and unjustified restriction on personal
liberty;
(vi) However, it is also to be emphasised herein that the Writ Court
is not the exclusive grievance redressal mechanism available to a
person against whom a LOC has been issued. As held in Sumer
Singh Salkan, a person against whom a LOC is issued is, in the
first instance, required to join the investigation or surrender before
the jurisdictional Court, or otherwise satisfy the Court that the
LOC is unwarranted. The individual may also approach the
authority which ordered issuance of the LOC and seek its
withdrawal on the grounds of illegality or non-application of mind.
An LOC may be withdrawn by the originating authority and may
also be rescinded or modified by the trial Court or the Court
having jurisdiction over the concerned police station, upon an
appropriate application."
3. In view thereof, the LOCs at the instance of the Bank will have to be
set aside. Accordingly, the same stands quashed. The petition, along with
pending application(s), if any, stands disposed of.
PURUSHAINDRA KUMAR KAURAV, J
FEBRUARY 25, 2026
aks/ss.
Signed By:AMIT KUMAR Signed
Signing Date:28.02.2026 By:PURUSHAINDRA
17:12:08 W.P.(C) 14855/2024 Page 3 of 3 KUMAR KAURAV
