LOC Loan Default Case: The Calcutta High Court recently quashed a look-out circular (LOC) issued against the former chief executive officer of a company accused in a case of loan default amounting to Rs 3,897 crore and said merely the quantum of the default cannot justify the “extreme measure” of restricting a citizen’s right to travel within or outside India.

Justice Krishna Rao, allowed a writ petition filed by one Sunil Kumar Agarwal challenging the LOC opened at the behest of the Serious Fraud Investigation Office (SFIO).

“The mere quantum of alleged default cannot be a basis for the extreme measure of restricting the personal liberty of the petitioners to travel inside or outside India,” the court said on January 15, referring to a verdict of another bench.