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No Criminal Case, No LOC: Banks Can’t Seek Travel Bans for Defaults

Case Law Details

Case Name
Bank of Baroda Vs Sahil Chugh & Ors. (Delhi High Court)
Date of Judgement/Order
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Bank of Baroda Vs Sahil Chugh & Ors. (Delhi High Court) Delhi HC Dismisses Bank of Baroda’s LPAs: LOCs Can’t Be Sustained Against Wilful Defaulters Without Criminal Case The Delhi High Court, by judgment dated 18-Dec-2025, dismissed a batch of Letters Patent Appeals filed by Bank of Baroda against orders of the learned Single Judge quashing Look Out Circulars (LOCs) issued against company Directors/partners who were declared wilful defaulters. The Division Bench held that mere default in repayment of bank dues, even if classified as wilful default and proceedings under SARFAESI Act and...
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Author Info

CA Vijayakumar Shetty
Qualification: CA in Practice
Company: Shetty & Co, Chartered Accountants, Mangalore
Location: Mangalore, Karnataka
Articles Published: 5,641

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