The High Court of Delhi has invalidated a Look Out Circular (LOC) issued against an individual for failing to repay loans related to two cars, stating that his fundamental rights cannot be deprived due to non-payment of these loans.

The court also stated that it couldn't criticize the authorities for issuing the Look Out Circular (LOC) against the individual because he had previously failed to appear before the investigating agency or the courts and had been declared a proclaimed offender.

Nonetheless, the man later presented himself before the relevant court, and the court's order declaring him as a proclaimed person no longer stands, as per the High Court's observation.

Justice Subramonium Prasad emphasized that it is established practice that a Look Out Circular (LOC) is issued against an individual accused of a cognizable offense under the Indian Penal Code. The purpose is to guarantee their presence before both the investigating authorities and the court.

The High Court (HC) additionally stated, "This court believes that the petitioner's fundamental rights cannot be deprived due to non-payment of loans for two cars, and therefore, in light of the specific facts and circumstances of this case, the HC is inclined to nullify the Look Out Circular (LOC) issued against the petitioner." The HC's decision came in response to a plea from a man who requested the cancellation of the LOC that had been issued against him in connection with an FIR filed at the Kashmere Gate police station. He was accused of cheating due to his failure to repay loans for the two cars.

The High Court instructed the individual to collaborate with the investigating agency and to provide a security deposit of Rs 5 lakh to the registrar general of the court.

Furthermore, the High Court advised the individual not to sell or dispose of his Renault Duster and Verna CRDI cars while the legal proceedings are ongoing.

The High Court stated, "If the petitioner fails to cooperate with the investigation or does not attend court hearings, the respondents are within their rights to issue another Look Out Circular (LOC) against the petitioner." The Court directed that the petitioner's passport, which had been submitted to the registrar general of the high court, should be returned to him. 

The individual had borrowed Rs 13 lakh and Rs 11.9 lakh from the State Bank of India in 2013 to finance the purchase of two cars. Subsequently, he began to default on the loan repayments and ceased communication with the bank.

Following his loan default and failure to communicate with the bank, criminal proceedings were initiated against him, and a Look Out Circular (LOC) was issued against him this year.

The petitioner's legal representative requested the quashing of the Look Out Circular (LOC) while assuring the court that the petitioner would fully cooperate with the investigation and attend all court hearings.

The State's counsel argued that the petitioner had been declared a proclaimed person, and thus, the authorities were not at fault for issuing the Look Out Circular (LOC) against him.