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Tamil Nadu 1 min read

Madras High Court: bank loan default alone cannot bar a person from travelling abroad

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The Madras High Court has ruled that defaulting on a bank loan is not, on its own, a ground to stop someone from going abroad when no criminal charge exists against that person. The Court said travel abroad is a fundamental right protected by Article 21 of the Constitution, and that a bank's request for a Look Out Circular (LOC) does not count as "law" capable of curtailing that right. The petitioner was a loan guarantor who wished to work overseas to earn money and clear the debt. Without fraud or a criminal case, the Court said, a defaulter cannot be compelled to stay in India.