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

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...