PAWANJOT KAUR SAWHNEY Vs. UNION OF INDIA

JUDGEMENT

(1.) The present petition has been filed seeking to set aside the order dtd. 21/10/2024 passed by the Ld. Special Judge (Companies Act), Dwarka Courts in LA No. 01 in "SFIO v. Jasjit Singh Sawhney " in CC No. 746/2024 and consequential permission to travel to the United Kingdom.

(2.) The petitioner, an Overseas Citizen of India (OCI) and UK resident, travelled to India in December 2021 and, while attempting to return to UK in August 2022, was stopped at IGI Airport due to a Look Out Circular (LOC) dtd. 13/6/2022 issued pursuant to an SFIO investigation ordered on 9/3/2022 into Net4 India Ltd., and related family-run companies over alleged siphoning of about Rs.208.00 crores from Indian and foreign banks. She suffered a cardiac arrest in September 2022, pursuant to that she filed writ petitions challenging the LOC dtd. 13/6/2022 and permission to travel to UK for medical reasons. Permission was conditionally allowed on 9/11/2022 subject to disclosure of bank accounts, appointment of a competent representative, and an undertaking of cooperation. However, this Court later found her non-compliant as she refused to share bank statements beyond two years, appointed an inexperienced representative, withheld details of her son (a co-accused residing abroad), and denied knowledge of company affairs. Observing her lack of cooperation and risk of absconding, this Court on 13/12/2022 declined permission to travel, however stating that if in the next two months, the Petitioner fully cooperates with the SFIO, this Court will reconsider the issue, and on 16/8/2023 dismissed her petitions bearing no. W.P.(C) 13057/2022 and W.P. (C) 14757/2022, upholding the LOC as justified in view of the gravity of economic offences under investigation as well as the investigation being at an early stage.

(3.) The investigation revealed that the petitioner, Pawanjot Kaur Sawhney, actively held key positions in the group companies, being a shareholder and director in Net4 Network Services Ltd. (NNSL) and PCPL, and a signatory to their financials. She signed the Master Reseller Agreement (MRA) dtd. 20/10/2016 on behalf of NNSL, which diverted revenues of Net4 India Ltd. (N4IL) to NNSL without mandatory board approvals, disclosures, or shareholders ' consent as required under Ss. 177, 188 and 189 of the Companies Act, 2013. Though she denied presence in India at the time of execution, records showed the MRA was notarised in her name, suggesting it was an afterthought to legitimise diversion of funds. As a director, she failed to disclose her interest despite her husband and son being directors of N4IL, and thereby facilitated concealment from the nominee director and investors. Through this arrangement, about Rs.60.00 crores of N4IL 's revenue was wrongfully channelled into NNSL, ultimately benefiting her family and related entities controlled through Sterling Capital Pvt. Ltd. and TONIPL, causing wrongful loss to N4IL, its creditors, and stakeholders.