Aditya B. Manaksia And Anr vs Union Of India And Ors
2023 Latest Caselaw 1179 Cal/2

                      IN THE HIGH COURT AT CALCUTTA
                        Constitutional Writ Jurisdiction
                                ORIGINAL SIDE

Present :-


THE HON'BLE JUSTICE MOUSHUMI BHATTACHARYA

                               WPO/992/2023

                        ADITYA B. MANAKSIA AND ANR.

                                   Versus

                          UNION OF INDIA AND ORS.




For the petitioners                  :      Mr. Ishaan Saha, Adv.

                                            Ms. Sananda Ganguli, Adv.

                                            Mr. Shubradip Roy, Adv.



For the UOI                          :      Ms. Susmita Saha Dutta, Adv.




Last Heard on                        :      11.05.2023.



Delivered on                         :      12.05.2023.



Moushumi Bhattacharya, J.

1. The petitioners are serving as directors and guarantors of a company

named Arena Machineries Limited. The petitioners have challenged a

Lookout Circular issued against the petitioners and seek quashing of the

same. The petitioners were made aware of the Lookout Circular when the

petitioner no.1 was prevented from travelling outside India on 18th February,

2023. The petitioners also claim that one of the other directors of the

concerned company was prevented from travelling outside the country. The

petitioners hence fear the same fate and seek urgent relief.

2. Admittedly, the originator of the Lookout Circular is the respondent

UCO Bank which claims some money from the petitioners as serving

directors of the concerned company, Arena Machineries Limited.

3. The undisputed facts which would appear from the material before the

Court is that one of the other directors of the company approached the Writ

Court wherein an order was passed on 29th September, 2022 by a Co-

ordinate Bench which records that the original application filed by the UCO

Bank before the DRT-3, Kolkata under the Recovery of Debts and

Bankruptcy Act, 1993 was decreed in terms of the petitioners making a

payment of Rs.21,75,53,643.29. The balance sum of Rs.4,11,23,833.11

remained due which was also subsequently paid by the petitioners. The

Bank's demand of pendente lite interest was taken up to the DRAT and is

pending as on date. The writ petition was accordingly allowed and the

Lookout Circular issued against the second petitioner, namely, Navneet

Manaksia was quashed and set aside.

4. The order of the Co-ordinate Bench was partly set aside by the

Division Bench on 26th April, 2023 but only to the extent of the restraint on

the petitioners from disposing of the assets charged to the UCO Bank.

5. The facts unequivocally show that as of now there are no dues

pending from the petitioners to UCO Bank. This is the clear recording of the

order passed by the Co-ordinate Bench. The only amount which the Bank

can claim from the petitioners is to the extent of the pendente lite interest,

proceedings whereof are presently pending before the DRAT.

6. The Bank has remained unrepresented despite being served. The

affidavit of service is on record.

7. Given the aforesaid facts, there cannot be any continuing fetter on the

petitioners to travel or exercise their rights under Article 19 of the

Constitution of India amongst others. The Bank has not shown any reason,

continuing or otherwise, for sustaining the Lookout Circular issued against

the writ petitioners.

8. WPO/992/2023 is, accordingly allowed and disposed of by quashing

any Lookout Circular which originated from the respondent Bank against

the petitioners, jointly or individually. There shall be no further fetter on the

petitioners from travelling outside India or in any other manner which the

petitioners may so intend.

Urgent photostat certified copies of this judgment, if applied for, be

supplied to the parties upon fulfillment of requisite formalities.

(MOUSHUMI BHATTACHARYA, J.)

sg.