LOCs not a recovery tool for banks: HC

The Delhi high court has ruled that banks cannot use Look Out Circulars (LOCs) to recover money, as it infringes upon a person’s fundamental right to travel abroad. The court stated that LOCs can only be issued when there are valid reasons for it, such as surrendering before investigating authorities or a court of law. The ruling came as the court quashed an LOC issued by Bank of Baroda against a former director of a private firm, who was not even an accused in any FIR. The court emphasized that the right to travel abroad cannot be taken away arbitrarily.