Supreme Court: In a special leave petition filed against the judgment and order passed by the Punjab & Haryana High Court, wherein the Court quashed the Look out circular (‘LOC’) issued on the request of Bank of Baroda, the division bench of Abhay S. Oka and Ujjal Bhuyan , JJ. has allowed the respondent 1 to travel abroad subject to condition that he will file an undertaking on oath in this Court to return to India by 27-06-2024.
Background:
Respondent 1 stood as a guarantor to the loan granted to borrower company and had executed a guarantee agreement.
The borrower company availed various cash / credit facilities from several lenders of Indian bank (including the Bank of Baroda) and UAE origin to tune of USD 150 Million for the purpose of its plants situated in Ras AI Khaimah, UAE. Respondents being the promoters, also furnished personal guarantees in favour of lenders of borrower company in order to secure the repayment of the credit facilities offered to borrower company. The Banks filed criminal cases for the cheque bounces. The Bank has duly approached the Immigration authorities for issuance of look out circulars. Immigration Authorities acceded to the request made by the bank and opened the “Lookout Circulars” on 30-08-2020 against Respondent and the Directors of the Borrowers Company.
The Supreme Court in order dated 24-03-2023 has issued notice to the respondents, and put an interim stay on the order dated 30-9-2022 passed by the High Court, wherein the Court permitted the respondent 1 to travel abroad for 2 months and set aside the look out circular.
The Bank contended that the impugned order came to be passed by High Court without following the principles of law laid down in various Supreme Court pronouncements. Thus, the present SLP was filed.
Respondent 1 prayed for vacation of the stay of order dated 24-03-2023.
Court’s Order:
The Court perused the affidavit dated 8-05-2024 filed by respondent 1, wherein he mentioned his Itinerary for the proposed travel.
The Court said that Notwithstanding the interim relief granted in the Special Leave Petition, respondent 1 is permitted to undertake travelling subject to condition that he will file an undertaking on oath in this Court to return to India by 27-06-2024.
The Court directed that the said undertaking must be filed within one week from the date of this order.
Further, it directed the Registry to forward a copy of this order to the Secretary of the Ministry of Home Affairs and the Bureau of Immigration. The Bench also directed the Bank of Baroda to forward a copy of this order to both the Authorities mentioned above.
The Court further directed the said Authorities to ensure that the respondent 1 is permitted to travel abroad in terms of the itinerary.
The matter will next be taken up on 09-07-2024.
CASE DETAILS
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