UNION OF INDIA Vs. MANPREET SINGH CHADHA

JUDGEMENT

(1.) The present Letters Patent Appeal under Clause X of the Letters Patent of this Court has been filed impugning the order dtd. 24/12/2024 passed by the learned Single Judge of this Court in CM APPL No. 73194/2024 filed in W.P(C) No.14518/2024, whereby the Look Out Circular (LOC) issued against the respondent herein has been suspended and he has been permitted to travel abroad, subject to certain conditions.

(2.) Before dealing with the rival submissions contended at the Bar, a brief factual background is to be noted; The respondent herein is the erstwhile director and shareholder of the M/s Wave Megacity Centre Pvt. Ltd. (Corporate Debtor). While the respondent was serving as director, Corporate Debtor had raised an amount Rs.1400.00 Crore from 2300 home-buyers, however, possession of the booked units was not handed over to any of the buyers at the time. On 26/3/2021, Corporate Debtor filed a Company Petition bearing CP (IB) No.197/PB/2021 under Sec. 10 of the Insolvency and Bankruptcy Code, 2016 (IBC) before the National Company Law Tribunal, New Delhi (NCLT), seeking initiation of the Corporate Insolvency Resolution Process (CIRP) for the aforesaid company. The respondent herein was transposed as the Financial Creditor in the Company Petition.

(3.) While the Company Petition was pending adjudication, an FIR bearing No.63/2021 was registered by the Economic Offences Wing (EOW), Delhi Police against the Corporate Debtor and its Directors on 13/4/2021, under Ss. 406, 420 and 120B of the Indian Penal Code, 1860 (IPC). Vide the order dtd. 6/6/2022, the NCLT dismissed the afore-mentioned Company Petition while imposing a penalty of Rs.1.00 Crore on the Corporate Debtor under Sec. 65 of the IPC and directed the Central Government to carry out an investigation into its affairs. Pursuant thereto, vide the order dtd. 15/6/2022, the Central Government ordered an investigation into the affairs of the Corporate Debtor under Sec. 210 of the Companies Act, 2013 (the Act).