Manan Goel Vs Union of India & Ors. (Delhi High Court)
Delhi High Court held that simple default of loan payable outside India cannot restrict Indian Citizen to travel abroad since there is no civil or criminal proceedings against petitioner in India. Thus, impugned Look-Out Circular quashed.
Facts- The petitioner is an Indian citizen, residing in Delhi, and one of the Directors of Gulf Petrochem FZC, UAE. Notably, the Sharjah Branch of respondent No. 5 (Bank of Baroda), between 2011 and 2019, extended credit facilities amounting to AED 95 million (approximately ₹195 crores) to Gulf Petrochem FZC, UAE. Out of the said amount, AED 65 million (approximately ₹130 crores) remains outstanding.
Gulf Petrochem FZC, UAE had created a charge in favour of respondent no. 5 Bank (Sharjah Branch) over Plot No. 2J-06, the value of which itself exceeds the sanctioned loan amount. The petitioner being one of the Directors, executed a personal guarantee in favour of the said branch of the Bank to secure the credit facilities.
Subsequently, on 31.05.2021, the Sharjah Branch of respondent no. 5 Bank declared the loan accounts of Gulf Petrochem FZC, UAE as “fraud”. It is submitted that the same was done without granting any opportunity of hearing or representation to the company. On 01.10.2021, the petitioner was prevented from boarding his flight to London from Delhi International Airport, when he was informed that LOC had been issued in his name by respondent no. 5.
