RAJENDER KUMAR PAHWA Vs. BUREAU OF IMMIGRATION

JUDGEMENT

(1.) The instant writ petition has been filed seeking quashing of the Look Out Circular (LOC) issued against the Petitioners at the instance of Respondent No.2/Bank of Baroda.

(2.) Reply has been filed on behalf of Respondent No.2. A perusal of the reply shows that the Petitioners herein are the Directors of M/s Goodluck Carbon Pvt. Ltd (hereinafter referred to as 'Company') which is engaged in the business of manufacturing carbon black used in rubber industries. A credit facility was extended to the company under a consortium banking arrangement in which Punjab National Bank was the lead bank. The account of the company turned NPA on 30/9/2015 and as on 31/10/2015 there was an aggregate outstanding balance of Rs.27.43 crores. The account of the company was reported as fraud to RBI on 31/7/2020. However, the said action has been set aside by Order dtd. 12/5/2023 passed by this Court in W.P.(C) 4249/2020.

(3.) Material on record indicates that a proposal for One Time Settlement (OTS) has been given by the Petitioners to the banks for Rs.39.50 crores and an amount of Rs.1,97,50,000.00 has also been deposited towards One Time Settlement. Material on record also indicates that the action taken by the bank under the SARFAESI Act has been stayed by the High Court of Punjab and Haryana in CWP 21789/2021.