TaxTMI 
TaxTMI 
2026 (10) TMI 1084
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....to 4, for Ms.Revathi Manivannan for R-5 COMMON ORDER Heard Mr.P.H.Aravind Pandian, learned senior counsel for Mr.A.Sandeep kumar, Mr.G.Subramanian, the learned Central Government Counsel for Respondent nos.1 to 4 and Ms.Revathi Manivannan for the respondent bank. 2. The admitted facts leading to these Writ Petitions are as follows:- The petitioners were promoters of a Company by the name and style of "M/s.GVR Infra Projects Limited". It had taken loans from several institutions, including M/s.Vijaya bank, which subsequently merged with the 5th respondent. The institution was supposed to carry out various infrastructural activities like roads, railways, water supplies, bridges, etc. On account of financial defaults, proceedings w....
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.... on the request of the 5th respondent. He states the respondent nos.1 to 4 will abide by any direction that is given by this Court. 6. Mr. Aravind Pandian argues that the liability of M/s.GVR Infra Projects Limited had been extinguished on account of the successful implementation of the resolution plan and dues payable to all financial institutions had settled. He states that the petitioners' desire to travel abroad in order re-generate their financial strength which might be helpful in order to extinguish their personal guarantees. 7. Ms.Revathi Manivannan strongly opposes the Writ Petitions on three grounds:- i) The first ground being that on 20.08.2025, the jurisdictional DRT has issued a Debts Recovery Certificate against....
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....Samaritan or even the rogue or a villain or worse as in the eyes of Ms.Revathi Manivannan, a defaulter in repayment of loans. iii) Apart from initiating civil proceedings, no other proceedings had been initiated by the bank against the petitioners. The petitioners are not alleged to have procured the loans from the 5th respondent bank by practicing guile or fraud on it. 10. It is not in dispute that M/s.GVR Infra Projects went in for NCLT proceedings, pursuant to which a resolution plan was successfully implemented. In those proceedings, the NCLT has recorded that the dues payable to the financial institutions have been completely extinguished. The proceedings initiated for recovery of money with respect to the balance dues as a....
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.... mortgage deed or a deed of guarantee executed by one party in favour of another cannot substitute for a law that is required under Article 21. 12. Be that as it may, as on today, respondent nos.1 to 4 have issued an executive order, enabling the banks to raise an LOC against the citizens. The constitutional validity of such LOC is the subject matter of consideration by the Supreme Court in SLP (Civil) Nos.17194 to 17230 of 2024. Hence, this Court will not go into that issue. Further, it is also not in challenge in these proceedings. 13. Insofar as the objections raised by Ms.Revathi Manivannan are concerned, with respect to the DRC, it is always open to the bank to have the same executed. Admittedly, the bank has not executed the sam....
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....l is entirely a decision to be taken by the petitioners. Calling upon them to disclose where they are travelling especially, when there are no criminal cases lodged against them, will certainly infringe their constitutional right to privacy. 16. Turning to the judgement in Aditya Arora's case, which was strongly relied upon by Ms.Revathi Manivannan, I should point out, that was a case where the bank had initiated bankruptcy proceedings and the writ petitioner had been declared as bankrupt. Insofar as the petitioner in W.P.No.2503 of 2026 is concerned, no proceedings had been initiated against him. With respect to the petitioner in W.P.No.2483 of 2026, personal guarantee proceedings has been initiated under Section 95 of the Insolvency an....