Delhi High Court
Sanjay Soni vs Union Of India And Anr on 24 January, 2022
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Date of decision: 24th January, 2022
+ W.P.(C) 10682/2021
SANJAY SONI ..... Petitioner
Through: Mr. Saurabh Kirpal, Sr. Adv. with
Mr. Srijan Sinha, Ms. Parul Dhurvey
and Mr. Naveen Soni, Advs.
versus
UNION OF INDIA AND ANR ..... Respondents
Through: Mr. Anil Soni, CGSC for UOI,
Mr. Atin Puniyani G.P. for UOI and
Mr. Arun Agarwal, Adv. for R-2.
CORAM:
HON'BLE MR. JUSTICE V. KAMESWAR RAO
V. KAMESWAR RAO, J. (ORAL)
CM. No. 2612/2022
1. This application has been filed by the petitioner with the
following prayers: -
"It is therefore most respectfully prayed that this Hon'ble
Court may graciously be pleased to:
a) Suspend the operation of Impugned LOC issued by
Respondent No. 1 against the Petitioner for a further
period six weeks from 21.01.2022 to 04.03.2022;
b) Pass any other order or further orders as this Hon'ble
Court deems fit under the circumstances of this case."
2. Mr. Saurabh Kirpal, learned Senior Counsel with Mr. Srijan
Sinha appeared for the petitioner and submitted that the writ petition has
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Digitally Signed By:ASHEESH
KUMAR YADAV
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been filed by the petitioner seeking quashing of Lookout Circular
('LOC', for short) issued by Deputy Director Bureau of Immigration of
Ministry of Home Affairs, Government of India. The petitioner /
applicant is currently serving as a Director in three Companies namely,
M/s. Si2 Microsystems Pvt. Ltd., M/s. IZMO Ltd. (a public listed
Company) and M/s. Hughes Precision Manufacturing Pvt. Ltd. These
aforementioned companies are engaged in developing and producing
space and defence-related hardware and software for ISRO, Indian
Army, Indian Air Force as well as International Clients in the United
States of America, Russia, Singapore, Israel, etc. These companies are
registered as Export Oriented Units. According to him, a similar
application was filed by the petitioner before this Court being CM
No.32943/2021. The said application was decided on November 18,
2021, whereby the Court has suspended LOC for a period of four weeks
and permitted the petitioner to travel to Russia, subject to several
conditions. According to him, the petitioner has fulfilled all the
conditions and has given security of immovable property worth more
than ₹5 crores bearing No. B-4/138, Safdarjung Enclave, New Delhi-
110029 of his Mama Ji, Shri Vijay Gupta. The original title deeds of the
property have been deposited in this Court and are still with the Registry
of this Court.
3. He submitted that upon verification and on the satisfaction with
respect to the fulfilment of the conditions imposed in the order dated
November 18, 2021, the petitioner / applicant was allowed to travel.
4. He also highlighted paragraph 6 of the order dated November 18,
2021, wherein this Court has made it clear that if in case the petitioner
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KUMAR YADAV
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seeks to travel abroad in future it would be open for him to move an
appropriate application before this Court, which would be considered in
accordance with the law.
5. He stated, the need to travel is not for a personal reason but rather
in a commercially sensitive matter. The companies where the petitioner
/ applicant is a Director are engaged in the field of export of defence
products, both hardware and software to countries including the United
States of America, Russia and other countries in Africa and, therefore,
the dates and the reasons for travelling abroad are the following:
S. Dates Countries Travelling purpose Documents in
No. support
1. 15.01.2022 U.S.A Attend S.H.O.T Invite dated
to Show (largest 11.10.2021
24.01.2022 defence exhibition) addressed by Elbit
Systems to the
Applicant to attend
S.H.O.T Show and
Air tickets.
2. 29.01.2022 Russia Meetings with M/s Letter dated
to Rosboronexport (a 10.01.2022 issued by
13.02.2022 Russian Defence Globalconsult LLC
Export) and Air tickets.
3. 20.02.2022 Malawi, Meetings with the Letter dated
to Africa Commander of the 10.01.2022 issued by
27.02.2022 Malawi Defence Director, Trident
Forces. Global Ltd.,
Lilongwe Malawi
and Air Tickets.
6. He has drawn my attention to the documents annexed at
Annexure A-4 (Colly) which are communications addressed to the
applicant by Elbit Systems for attending the S.H.O.T Show in the
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KUMAR YADAV
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United States of America, letter of Globalconsult LLC, Russia and by
Director, Trident Global Ltd., Malawi.
7. At this stage, Mr. Kirpal stated since the period to travel to the
United States of America as per the details above is about to expire, he
shall not press the application for his travelling to the United States of
America. In other words, he shall confine his prayer for travel to Russia
and Malawi.
8. He stated that no FIR has been registered and even on the earlier
occasion when he travelled to Russia in terms of order dated November
18, 2021, the petitioner had returned back to the country within six
days. He sought the relief as prayed for in the application.
9. A counter affidavit has been filed by respondent No.2 i.e., Bank
of Baroda and Mr. Arun Agarwal, learned counsel who appeared on
behalf of respondent No. 2 Bank contended that the present application
with the enclosed documents does not inspire confidence. There is a
reference to a certain S.H.O.T Show, the same does not appear to be a
necessity in terms of travel.
10. He stated that in light of the Covid-19 Pandemic everybody is
trying to confine themselves to their own place, confining their physical
movements, the petitioner is making an attempt to visit the S.H.O.T
Show. The same does not appear to be a necessity. He laid stress on the
fact that the recovery proceedings before DRT are not proceeding
forward at all. The petitioner has failed to take appropriate steps or
discharge his contractual obligations. The petitioner claimed to be a
man of means, however, he is still trying to avoid financial
responsibilities.
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Digitally Signed By:ASHEESH
KUMAR YADAV
Signing Date:24.01.2022
17:01:54
11. Even by drawing my attention to internal page 27 of the
petitioner's application, he stated that a specific reference is made to a
particular booth at 14130 which is some sort of an exhibition, such
exhibitions keep on happening at various places and at various times.
Frequent visits in a casual manner should not bypass the LOC. The
petitioner is entering into commercial ventures without any intimation
to the lending bank. The intention remains doubtful inasmuch as the
assets may possibly be diluted by the petitioner in respect of the
securities of the lending bank i.e., respondent No.2.
12. By referring to internal page 29 of the petitioner's application, he
submitted that the address is missing. Even the email address is quite
general. It is therefore apparent that the documents may not have
respectable credentials. The necessity to visit abroad does not seem to
be genuine. According to Mr. Agarwal, the petitioner is trying to set up
a case to say that he is in some serious commercial ventures. At the
same time, he is not cooperating in recovery proceedings before DRT.
Further, there is a reference to payment of travelling expenses in respect
of the visit in paragraph 2 of page 29 of the petitioner's application. The
source of funds is nowhere to be seen. There is no reference of any bank
account anywhere. The fact remains while granting credit facilities the
petitioner being a Director / guarantor has already committed, not to
have any banking relationship with any other bank other than the
lending bank i.e., respondent No.2. No prior consent has ever been
obtained from respondent No.2 for opening any other bank account. He
sought dismissal of the application.
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Digitally Signed By:ASHEESH
KUMAR YADAV
Signing Date:24.01.2022
17:01:54
13. Having considered the rival submissions made by the counsel for
the parties, there is no dispute that a similar application was considered
by this Court in CM No.32943/2021 and on November 18, 2021, this
Court had passed a detailed order. The same is reads as under: -
"CM APPL. 32943/2021
1. This is an application filed by the petitioner seeking
suspension of the impugned Look Out Circular (LOC)
issued by the respondent no.1 at the request of respondent
no.2/Bank of Baroda, during the pendency of the present
writ petition in order to enable the petitioner, who is a
Director in "Si2 Microsystems Private Limited" (which is
engaged in developing and producing Space and Defence
Hardware for ISRO, the Indian Army, Indian Air Force, as
well as international clients in USA, Russia, Singapore,
Israel etc.) to travel to Moscow in order to meet with the
officials of the Russian Government.
2. A reply to the application has been filed by the respondent
no.2, vehemently opposing the relief sought for by the
petitioner. It has been contended therein, that while the
petitioner claims that it is necessary for him to travel
abroad for the purpose of entering into various
international contracts, he has not been appearing in the
recovery proceedings before the Debt Recovery Tribunal
(DRT), Mumbai in O.A. No. 11/2017, despite being
declared a willful defaulter as way back as on 21.12.2018.
3. In response, learned senior counsel for the petitioner, at
the outset, submits that the petitioner never had any intent
of not appearing before the DRT and was, in fact,
proceeded ex-parte in the aforesaid proceedings. He
further submits that the petitioner has already preferred an
application for restoration of the proceedings before the
DRT, Mumbai, which is stated to be pending adjudication.
He further draws my attention to the communication dated
10.11.2021 received by the petitioner from one M/s.
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KUMAR YADAV
Signing Date:24.01.2022
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Globalconsult LLC, Moscow, Russia in support of his plea
that the petitioner is required to travel to Russia on
20.11.2021 in order to attend a meeting with the Board of
Directors of the aforesaid company, scheduled to be held
on 22.11.2021 for signing agreements pertaining to the
procurement of conductivity materials/bionic chips
manufactured by the petitioner's company.
4. Having considered the submissions of learned counsel for
the parties and perused the record, what emerges is that till
date, no FIR has been registered against the petitioner. It is
also pertinent to note that the petitioner's company has
various international clients in multiple countries and is
heavily reliant on overseas supply of its products and
services. It is also evident that by way of the present
application, the petitioner is seeking to travel to Moscow,
Russia only for purposes of entering into agreements
pertaining to procurement of the company's products,
which is substantiated by a communication received from
M/s. Globalconsult LLC on 10.11.2021. I am, therefore, of
the view that the petitioner is entitled to travel abroad for a
period of four weeks. The application is, accordingly,
allowed by directing that the impugned LOC against the
petitioner shall be suspended during the pendency of the
present petition. The same will, however, be subject to the
following conditions:-
i. The petitioner shall furnish a security of a sum of Rs.5
crores to the satisfaction of the Registrar General of this
Court. The said security may be furnished in the form of
an FDR; a Bank guarantee; or unencumbered
immovable property of the same value belonging to the
petitioner or any of his relative(s), who will also furnish
an undertaking to the Registrar General of this Court
that he/she/they will not create any third party right or
interest in such property/properties during the period the
petitioner is travelling abroad.
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Digitally Signed By:ASHEESH
KUMAR YADAV
Signing Date:24.01.2022
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ii. The copies of the documents which the petitioner will file
with the Registrar General, shall also be furnished to all
the respondents.
iii. The petitioner will also furnish to the respondents a
copy of the air tickets he has purchased for his travel,
along with the complete itinerary of his stay in Moscow,
Russia.
iv. The petitioner will also provide a phone number which
would be used by him during his stay abroad, which
number will be kept operational at all times.
v. The petitioner will return to the country within four
weeks of his departure.
5. The application stands disposed of in the aforesaid terms.
6. It is, however, made clear that in case the petitioner seeks
to travel abroad in future, it will be open for him to move
an appropriate application before this Court, which will be
considered in accordance with law.
7. All concerned authorities shall act in compliance with the
digitally signed copy of this order, duly uploaded on the
official website of the Delhi High Court,
www.delhihighcourt.nic.in, which shall be treated as the
certified copy of the order for the purpose of ensuring
compliance. No physical copy of orders shall be insisted by
any authority/entity or litigant."
14. A perusal of the order above would show that a similar stand was
taken by respondent No.2 Bank before this Court in the said application.
This Court allowed the visit of the petitioner / applicant to Moscow,
Russia by imposing conditions in paragraph 4 of the order which I have
also reproduced above.
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Digitally Signed By:ASHEESH
KUMAR YADAV
Signing Date:24.01.2022
17:01:54
15. It is also acknowledged by Mr. Agarwal that no FIR has been
filed against the petitioner for any offence. That apart, the petitioner has
complied with all the conditions that were set by the Court. He through
his relative Shri Vijay Gupta (Mama Ji) has given security in the form
of an immovable property being B-4/138, Safdarjung Enclave, New
Delhi-110029 which as per the valuation report is more than ₹5 crores,
as can be seen from the order dated December 21, 2021, of the learned
Joint Registrar (Judicial).
16. It is not the case of respondent No.2 that the petitioner has not
complied with the conditions as set down by the Court in the order
dated November 18, 2021. The submission of Mr. Kirpal that the
petitioner has returned within six days is also not disputed by Mr.
Agarwal.
17. As noted by the Court, the petitioner's company has various
international clients in multiple countries and is heavily reliant on
overseas supply for its products and services.
18. In view of the submissions made by Mr. Kirpal, the petitioner
intends to travel to Russia and Malawi, for the purposes as noted above
i.e., meeting with M/s. Rosboronexport and Commander of the
Malawian Defence Force. I am, therefore, of the view that the petitioner
having been earlier allowed to travel abroad for a period of four weeks,
this application also needs to be allowed, directing that the impugned
LOC shall remain suspended for a period of three weeks (from the date
of departure) to enable the petitioner travel to Moscow, Russia and
Malawi. However, the same shall be subject to the following conditions:
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Digitally Signed By:ASHEESH
KUMAR YADAV
Signing Date:24.01.2022
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i. The petitioner / applicant shall furnish security of a sum of ₹5
crores to the satisfaction of the Registrar General of this Court
in the form of FDR; a Bank Guarantee; or unencumbered
immovable property of the same value belonging to the
petitioner or any of his relative(s) who will also furnish an
undertaking to the Registrar General of this Court that he / she
/ they will not create any third party right(s) or interest(s) in
such property / properties during the period the petitioner is
travelling abroad.
ii. If the security already furnished, pursuant to the order dated
November 18, 2021, has not been released to Shri Vijay
Gupta, if he agrees, the same shall be considered, subject to a
fresh valuation report is called for from the concerned
authority and also following the same procedure as followed
including calling for an undertaking from Shri Vijay Gupta.
iii. Copies of all the documents which the petitioner will file with
the Registrar General shall also be furnished to all the
respondents.
iv. The petitioner shall also furnish to the respondents a copy of
the air tickets, he has purchased for his travel along with the
complete itinerary of his stay in Moscow, Russia and Malawi.
v. The petitioner shall also provide the phone number which will
be used by him during his stay abroad, which number shall be
kept operational at all times.
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Digitally Signed By:ASHEESH
KUMAR YADAV
Signing Date:24.01.2022
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vi. The petitioner will return to the country within a period of
three weeks of his departure.
19. The application is disposed of, in the aforesaid terms.
20. All concerned authorities shall act in compliance with the
digitally signed copy of this order, duly uploaded on the official website
of the Delhi High Court, www.delhihighcourt.nic.in, which shall be
treated as the certified copy of the order for the purpose of ensuring
compliance. No physical copy of orders shall be insisted by any
authority/entity or litigant.
V. KAMESWAR RAO, J
JANUARY 24, 2022/ds
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Digitally Signed By:ASHEESH
KUMAR YADAV
Signing Date:24.01.2022
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