Delhi HC defends hearing in Naresh Goyal accuses challenging LOC issued against him
5. July 2019
The Supreme Court of Delhi postponed the hearing in a plea of indebtedness Jet Airways founder and former president Naresh Goyal who challenged a Look Out Circular (LOC) issued against him.
The case was noted to hear before a single judge Bench of Justice Vibhu Bakhru who ordered the case to be listed before another bench.
LOC was issued against Naresh Goyal on the insistence of SFIO under the Ministry of Corporate Affairs.
It is Goyal's case that the LOC was issued for no reason and contrary to Articles 21 and 14 of the Constitution. According to LOC, Goyal and his wife Anita were scheduled from a Dubai-bound flight on May 25.
In his petition, Goyal has asserted that he is a law-abiding citizen and that he traveled to Dubai to meet some investors for resuming the operation of Jet Airways. Goyal has claimed that he had not been provided with a copy of the LOC despite several inquiries and was therefore refused to clarify his position.
The Court has also been informed that so far no FIR has been registered against Goyal for commission for any offense. Therefore, he is not accused.
Jet Airways owes over Rs 8,000 crore to lenders, including the consortium of banks led by the State Bank of India. The airline also has a large debt through accumulated losses over Rs 13,000 crore, supplier fees of over Rs 10,000 crore and payroll taxes over Rs 3,000 crore. Insolvency procedures are currently under consideration by the National Company Law Tribunal, Mumbai Bench.
After Jet Airways fell, Goyal had withdrawn from the company's board in March.
Petition filed by lawyer Sakesh Goyal has also challenged Office Memorandums dated October 27, 2010 and December 5, 2012, issued by the Interior Ministry. These are the basis for the issuance of the LOCs.
Goyal was represented by former ASG, Senior Advocate Maninder Singh .
The case will be heard next July 9th.
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