UNION BANK OF INDIA Vs. HULAS RAHUL GUPTA

JUDGEMENT

(1.) Present appeal has been filed under Clause X of the Letters Patent of the then High Court of Judicature at Lahore, which stands extended to the High Court of Delhi, challenging the judgment dtd. 20/12/2023, whereby the learned Single Judge has quashed the Look Out Circular ('impugned LOC'), issued against the Respondent at the request of the Appellant Bank, and accordingly, allowed the W.P. (C) 2063/2023 filed by the Respondent.

(2.) The facts of the case are that the Respondent was the erstwhile Managing Director and founder of M/s Indosolar Ltd. ('Company'). The Appellant Bank, along with other banks, had extended credit facilities and loans to the said Company. The Respondent and his father stood themselves as the Personal Guarantors for the loan and credit facilities extended to the said Company. The loan account of the Company was classified as NonPerforming Asset ('NPA') on 1/7/2013; recovery proceedings under Recovery of Debts and Bankruptcy Act, 1993 were initiated against the borrower and guarantors for an outstanding amount of Rs.280.00 Crores (approximately), which culminated in a decree in favour of the Appellant Bank for the claim amount with interest.

(3.) As per record, Insolvency Resolution Process was initiated under Insolvency and Bankruptcy Code, 2016 ('IBC 2016') against the Company. Separately, the Respondent had also initiated his personal Insolvency Resolution Process, wherein a Resolution Plan was approved and report was filed by the Resolution Professional. Pertinently, no criminal proceedings or FIR by any authority are pending against the Respondent.