Bombay High Court
Pradeep Agarwal vs Union Of India Ministry Of Home Affairs ... on 24 January, 2022
Author: Madhav J. Jamdar
Bench: G.S. Patel, Madhav J. Jamdar
Digitally signed
by HEMANT 905-OSWPL-42-2022.DOC
HEMANT CHANDERSEN
CHANDERSEN SHIV
SHIV Date:
2022.01.25
17:20:54 +0530
hcs
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
WRIT PETITION (L) NO. 42 OF 2022
Pradeep Agarwal ...Petitioner
Versus
Union of India & Ors. ...Respondents
Mr Rohit Gupta, with Mr Ravi Gandhi and Mr Harsh Choksi i/b
Kanga & and Company for the Petitioner.
Mr Aditya Thakkar, with Mr D P Singh i/b Gul Asanani for the
Union of India/Respondent No 1.
Mrs Rathina Maravarman, for Respondent No 3.
CORAM G.S. Patel &
Madhav J. Jamdar, JJ.
DATED: 24th January 2022
PC:-
1. The Petition is one of many similar Petitions. These challenge the issuance of what are called "Look Out Circulars" or LOCs issued by the 2nd Respondent, the Bureau of Immigration, at the instance of various public sector banks. In this case, the requesting bank is the 3rd Respondent, the Bank of Baroda.
2. We have previously passed several orders in similar petitions permitting individual petitioners to travel abroad for limited durations for stated purposes and subject to various undertakings. In the meantime, since many petitions raise vires challenges to the Office Memoranda or circulars from 2010 to 2018/2019 under Page 1 of 5 24th January 2022 905-OSWPL-42-2022.DOC which the LOC are issued, we have posted the entire group for final disposal at an early date. Notice has been issued to the Attorney General. We are informed that Additional Solicitor General will be appearing for the Union of India.
3. This Petition will have to be tagged and clubbed with that group (the lead petition in which Writ Petition No. 4356 of 2021). The Registry will ensure that this tagging is done.
4. The present Petitioner is a businessman and used to be s Director of Company called Psons Ltd. This was incorporated in Hong Kong. It is presently in liquidation. Psons Ltd had a banking relationship with the Hong Kong Branch of the Bank of Baroda from about 2003/2004. In 2009/2010, PSons took working capital facilities from the Bank of Baroda, Hong Kong. We are not concerned with the documents that were signed, but it is undisputed that the Petitioner signed a continuing guarantee and indemnity on 28th December 2010 guarranting the repayment of all debts by Psons Ltd to the Bank of Baroda, Hong Kong.
5. In 2015, Psons ran into financial difficulties. These difficulties soon resulted in Psons becoming a Non Performing Asset or NPA sometime in March 2016. The creditors of Psons brought up winding up proceedings. The Bank of Baroda, Hong Kong joined these winding up proceedings in April 2016. When some creditors' dues were settled, the Bank of Baroda was allowed to be substituted as the lead petitioner in these liquidation proceedings. In February 2017, there came to be passed an order of liquidation against Psons.
Page 2 of 524th January 2022 905-OSWPL-42-2022.DOC A few months later, in October 2017, the Official Liquidator stood appointed of the company. The Petitioner says he was served with copy of writ of summons issued at the instance Bank of Baroda, Hong Kong, in the Hong Kong High Court in 2018.
6. Paragraph 3.10 says that the Petitioner has since been negotiating with the liquidator to arrive at a One Time Settlement of all outstanding dues. Before us today, Ms Maravarman for the Bank of Baroda submits that there is in fact an agreement or understanding in regard to a One Time Settlement payment. This, however, is not a matter on which we can make final order in the present Writ Petition. We leave it the Bank of Baroda to adopt suitable proceedings or to make an appropriate application in regard to that submission. We leave all contentions open.
7. There is an Affidavit in Reply by the Bank of Baroda which sets out the background of indebtedness. There is also an Additional Affidavit of the Petitioner affirmed on 21st January 2021. It says inter alia that before the impugned LOC was issued some time in November 2019, the Petitioner regularly travelled abroad. The further Affidavit says that the Petitioner desires to travel to Turkey between 1st February 2022 to 15th February 2022 for specific business meetings with identified parties. The details are set out in paragraph 4 at page 155 and 156. The Affidavit narrates that on 29th October 2019 the Petitioner was then scheduled to travel from Mumbai to Hong Kong. He was not allowed to board his flight on the basis that a look out circular had been issued against him.
Page 3 of 524th January 2022 905-OSWPL-42-2022.DOC
8. The present Petition contains a larger challenge but that we will address that along with the rest of the group.
9. The Petitioner is ordinarily resident in Mumbai. He has ties to India. His travel plans as indicated above are for a limited duration and specifically include a date of return to Mumbai on 15th February 2022.
10. For these reasons, we propose to grant the Petitioner limited relief, subject to the following terms and conditions, to travel to Turkey between 1st February 2022 and 15th February 2022. These terms and conditions follow those that we have issued in other similar cases. Hence the following order:-
(a) The LOC in question will not come in the way of the Petitioner going overseas from 1st February 2022 until 15th February 2022.
(b) The Petitioner must file with the Prothonotary & Senior Master of this Court a full itinerary of his overseas travel with all details, contact numbers etc.
(c) The Immigration Authorities at Mumbai Airport will permit the Petitioner to pass through immigration and to board his flight or flights irrespective of whether the immigration system has been updated and whether the Bank of Baroda has informed the Immigration Authorities or not.Page 4 of 5
24th January 2022 905-OSWPL-42-2022.DOC
(d) In the meantime, and until 15th February 2022, the operation of the LOC, whether currently valid or auto- renewed, is stayed.
(e) The Petition is also to be clubbed along with group of Writ Petitions in which lead Petition is Writ Petition No 4356 of 2021.
11. All concerned will act on production of a digitally signed copy of this order.
(Madhav J. Jamdar, J) (G. S. Patel, J)
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24th January 2022