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Synopsis

While quashing a look out circular (LOC) issued against a man who defaulted on loans for two cars, the Delhi High Court recently observed that the fundamental rights of a person cannot be taken away for non-payment of a loan.

The bench of Justice Subramonium Prasad opined that for non-payment of loans in respect of two cars, the fundamental rights of the petitioner could not be taken away, and, therefore, in the facts and circumstances of the case at hand, the court was inclined to quash the LOC issued against the petitioner.

Justice Prasad said that it is well settled that an LOC is opened against a person who is accused of a cognizable office under the Indian Penal Code to ensure his or her presence before the investigating authorities and before the court. “Since the petitioner was not appearing before the investigating authorities or before the courts, he was declared as a proclaimed person", he added.

However, the judge noted that in the present case, the facts point out that the petitioner had appeared before the court, and the order declaring the petitioner as a proclaimed person no longer existed.

Justice Prasad also quashed the FIR lodged at Kashmere Gate police station and directed Sushil to cooperate with the investigating agency and deposit a security amount of Rs. 5 lakh with the registrar general of the court.

Additionally, court prohibited him from disposing of his two cars during the proceedings. It also clarified, “In case the petitioner does not cooperate with the investigation or does not appear before the courts, it is always open for the respondents to open another LOC against the petitioner".

Court further ordered that the passports of the petitioner, which had been deposited with the Registrar General of the high court, be released.

Case Title: Sushil Kumar Sehgal v. Union of India & Ors.