$~122 * IN THE HIGH COURT OF DELHI AT NEW DELHI # CNR No. DLHC010584082024 + W.P.(CRL) 2748/2024 SHALINI JINDAL .....Petitioner Through: Mr. Vipul Chaudhary, Advocate versus BANK OF BARODA & ORS. .....Respondents Through: Mr. Amit Tiwari, CGSC, Ms. Ayushi Srivastava, , Mr. Arpan Narwal, Mr. Kushagra Malik, and Mr.Ujjwal Tyagi, Advocates for R-UOI. Mr. Kush Sharma, Mr. Anmol Gupta and Ms.Niharika Tanwar, Advocates for R-BOB. Mr.Ripudaman Bhardwaj SPP, Mr. Kushagra Kumar, Mr Amit kr Rana, Mr Anmol Ghai Advocates for CBI CORAM: HON’BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV O R D E R % 05.08.2026 1. The instant petition seeks the quashment of a Look Out Circular (“LOC”) issued at the instance of the Respondent No. 1-Bank of Baroda (“BoB”). 2. The facts of the case would indicate that an FIR dated 06.06.2021 came to be registered against one SRS Finance Limited and other accused persons at the instance of the Assistant General Manager of BoB. The allegations in the said FIR pertain to a bank loan default committed by the This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 12/08/2026 at 11:36:29 accused persons. The petitioner is contended to be one of the 10 guarantors qua the loan obtained by SRS Finance Limited. In connection with the said FIR, a LOC came to be issued at the instance of BoB. 3. An LOC cannot be issued by a bank and cannot be employed as a mechanism for the recovery of money or outstanding dues. The issuance of an LOC for such purpose is contrary to law. This Court in Vineet Gupta and Anr. Vs. Union of India and Ors.1, has held 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 1 W.P.(C) 7850/2025; dated 10.02.2026 This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 12/08/2026 at 11:36:29 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 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.” 4. This Court in Ritu Singal v. Bureau of Immigration and Ors.2, and Shivani Modi v. Union of India and Ors.3, has further reiterated that LOC issued at the behest of public sector banks/financial institutions is non est and unsustainable in the eyes of law. 5. In view of the aforesaid, the LOC issued at the instance of BoB under the facts of the present case would not sustain. The same is, therefore, quashed. Accordingly, the petition stands disposed of. PURUSHAINDRA KUMAR KAURAV, J AUGUST 5, 2026 Nc/Rao 2 2026:DHC:3806 3 2026:DHC:4628 This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 12/08/2026 at 11:36:29