Two guarantors of a defaulted bank loan challenged Look Out Circulars issued at Bank of Baroda's instance in a CBI FIR. The court held none of the prerequisites for opening an LOC were made out since they were not accused, and directed that the LOCs be closed.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
$~85 & 86
SHASHI JINDAL .....Petitioner Through: Mr. Vipul Chaudhary and Ms. Shrishti Panwar, Advocates. versus
BANK OF BARODA & ORS. .....Respondents Through: Mr. V.P.Singh and Mr. Rupesh Dutta, Advocates for R-1. Mr. Ripu Daman Bhardwaj, CGSC/SPP with Mr. Kushagra Kumar and Mr. Abhinav Bhardwaj, Advocate for CBI. Mr. Vedansh Anand, Government Pleader for R-2.
86
+
W.P.(CRL) 140/2023
RITU JINDAL .....Petitioner Through: Mr. Vipul Chaudhary and Ms. Shrishti Panwar, Advocates.
versus
BANK OF BARODA & ORS. .....Respondents Through: Mr. V.P.Singh and Mr. Rupesh Dutta, Advocates for R-1. Mr. Vedansh Anand, Government Pleader for R-2. Mr. Ripu Daman Bhardwaj, CGSC/SPP with Mr. Kushagra Kumar and Mr. Abhinav Bhardwaj, Advocate for CBI.
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W.P.(CRL) 129/2023 & W.P.(CRL)140/2023 Page 1 of 7
Mr. Anil Soni, CGSC with Mr. Devvrat Yadav, Advocate for UOI.
CORAM: HON'BLE MS. JUSTICE NEENA BANSAL KRISHNA J U D G M E N T (oral)
CRL.M.A.24758/2024 (Exemption) IN W.P(CRL) 129/2023 CRL.M.A.24515/2024 (Exemption) IN W.P(CRL) 140/2023
CRL.M.A.24757/2024 (under Section 528 of B.N.S.S filed by the petitioner for early hearing) in W.P(CRL) 129/2023 CRL.M.A.24514/2024 (under Section 528 of B.N.S.S filed by the petitioner for early hearing) in W.P(CRL) 140/2023
W.P(CRL) 129/2023 (under Article 226 of the Constitution of India rad with Section 482 CrPC for setting aside/quashing the Look Out Circular issued at the instance of respondent No. 1/Bank of Baroda) and W.P(CRL) 140/2023 (under Article 226 of the Constitution of India rad with Section 482 CrPC for setting aside/quashing the Look Out Circular issued at the instance of respondent No. 1/Bank of Baroda)
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that they are neither the accused nor a suspect. They are not deliberately evading arrest or not appearing in the Court during the trial or that NBWs have been issued against them, which are the pre-conditions for issuance of LOC, as has been held by this Court, in the matter of Sumer Singh Salkan vs. Asst. Director & Ors ., (2010 (4) JCC 2401).
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was granted, which was subsequently enhanced to Rs.65,00,00,000/-. However, despite the significant financial support to the Borrower Company, it failed to meet its repayment obligations as per the agreed terms and conditions. Consequently, because of persistent defaults, the Loan Facility extended to the Borrower Company, was classified as a NonPerforming Asset (NPA), on 28.02.2017.
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issued by the competent Authorities to secure the petitioners’ presence during the ongoing investigation. As the investigation is still in progress, the request for quashing of LOC, does not warrant any consideration. The appropriate stage would be after the investigations have been concluded. Since the petitioners are personal guarantors, who have accepted their liabilities in the General Form of Guarantee executed on 23.12.2015, the relief sought is not merited.
20. Submissions Heard.
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likelihood of the accused leaving the country to evade trial/arrest”. 23. In the present case as noticed above, none of the conditions for the LOC are made out against the Petitioners who were merely the guarantors who had furnished their property as security, which in fact has already been auctioned in discharge of their liability. They are admittedly, not the accused persons and none of the prerequisites for opening the LOC are made out. Thus, the LOC against the two petitioners are directed to be closed. 24. The above two petitions, along with any pending Applications, are hereby disposed of.
(NEENA BANSAL KRISHNA) JUDGE
AUGUST 20, 2024/RS
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1 issue framed by the court
Whether the Look Out Circular issued against the petitioners, who are only guarantors and not accused in the FIR, can be cancelled?
Colour shows how this judgement treated each authority
Sumer Singh Salkan vs. Asstt. Director and OthersRelied on¶22
(2010 (4) JCC 2401)
4 provisions across 4 enactments
Shashi Jindal
Ritu Jindal
Bank of Baroda
Neena Bansal Krishna
As recorded by the court registry
A constitutional writ petition in a criminal context, most commonly habeas corpus or a challenge to an FIR or detention order.
Judgements on the same questions, provisions and authorities, from every court
