$~7 * IN THE HIGH COURT OF DELHI AT NEW DELHI Date of decision: 27.12.2024 + LPA 1253/2024 and CM No. 76660/2024 (stay)

UNION OF INDIA .....Appellant Through: Mr. Amit Tiwari, CGSC with Mr. Ayush Tanwar and Mr.

Aakash Pathak, Advs.

Mr. Sanjay Shorey, ICLS, DG (OA), MCA, Mr. Vinod Sharma, ICLS, Regional Director, MCA, Mr. Sanjay Kumar Gupta, ICLS, Joint Director, MCA and Mr. Kishore D. Wade, ICLS, Assistant Director, MCA.

versus MANPREET SINGH CHADHA .....Respondent Through: Mr. Sandeep Sethi, Sr. Adv.

With Mr. Sumeer Sodhi, Mr. Aman Nandrajog, Mr. Arjun Nanda, Mr. Dhruv Wadhwa and Ms. Shreya Singh, Advs.

CORAM:

HON'BLE MS. JUSTICE NEENA BANSAL KRISHNA HON'BLE MS. JUSTICE SHALINDER KAUR SHALINDER KAUR, J. (Oral)

1. The present Letters Patent Appeal under Clause X of the Letters Patent of this Court has been filed impugning the order dated 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.

Signature Not Verified Digitally Signed LPA 1253/2024 Page 1 of 8

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 Crore from 2300 home-buyers, however, possession of the booked units was not handed over to any of the buyers at the time. On 26.03.2021, Corporate Debtor filed a Company Petition bearing CP (IB) No.197/PB/2021 under Section 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 13.04.2021, under Sections 406, 420 and 120B of the Indian Penal Code, 1860 (IPC). Vide the order dated 06.06.2022, the NCLT dismissed the afore-mentioned Company Petition while imposing a penalty of Rs. 1 Crore on the Corporate Debtor under Section 65 of the IPC and directed the Central Government to carry out an investigation into its affairs. Pursuant thereto, vide the order dated 15.06.2022, the Central Government ordered an investigation into the affairs of the Corporate Debtor under Section 210 of the Companies Act, 2013 (the Act).

Signature Not Verified Digitally Signed LPA 1253/2024 Page 2 of 8

4. Aggrieved by the aforesaid order, the Corporate Debtor, on 24.06.2022, filed a Company Appeal bearing CA (AT) (Insolvency) No.918/2022 before the National Company Law Appellate Tribunal, New Delhi (NCLAT) challenging the order dated 06.06.2022 passed by the NCLT. However, vide the order dated 05.01.2023, the NCLAT dismissed the Company Appeal filed by the Corporate Debtor.

5. Thereafter, vide the reference dated 23.10.2023, the Director, Inspection and Investigation, Ministry of Corporate Affairs (MCA) informed the Bureau of Immigration that a LOC be issued against the respondent. On 08.10.2024, the respondent herein filed a Writ Petition bearing W.P(C) No.14518/2024, praying therein for the following relief:

“a. Issue a Writ of Mandamus directing the Respondents to place before this Hon’ble Court the Look out Circular(s) and all connected note sheets / letters / documents showing the process and reasons for issuance and continuation thereof against the Petitioner, holder of Indian Passport Nos. Z4537165 issued on 16.10.2019 and Z7651222issued on

12.01.2024 issued by the Respondent No. 1; and b. Issue a Writ of Certiorari for quashing