Bank Of Baroda vs Ashish Mittal & Ors.

$~8
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Date of Decision : 28.07.2026
# CNR No. DLHC010312002026
+ LPA 535/2026, CM APPL. 45293/2026 & CM APPL. 45296/2026
BANK OF BARODA .....Appellant
Through: Mr. Sougat Sinha, Ms. R. Gayathri
Manasa, Mr. Navneet Kumar, Mr.
Vishal Majumdar and Ms. Maitrayee
Shrivastva, Advocates.
versus
ASHISH MITTAL & ORS. .....Respondents
Through: Mr. Talib Khan, Advocate for R-1 &
R-2.
Ms. Archana Sharma, SPC with Mr.
Divakar Upadhyaya and Mr.
Abhishek Singh Parmar, Advocates
for UoI.
CORAM:
HON'BLE THE CHIEF JUSTICE
HON'BLE MR. JUSTICE TEJAS KARIA
TEJAS KARIA, J. ( ORAL )
CM APPL. 45294/2026(Exemption)
1. Exemption allowed, subject to all just exceptions.
2. The Application stands disposed of.
Signature Not Verified
Signed By:NEELAM
SHARMA
Signing Date:31.07.2026
18:16:09
LPA 535/2026 Page 1 of 5

CM APPL. 45295/2026(Delay)
3. This is an Application filed on behalf of the Appellant seeking
condonation of delay of 26 days in filing the present Appeal.
4. Having heard learned Counsel for the Parties and perused the
averments made in the Application seeking condonation of delay in filing
the present Appeal, the same is allowed. The delay of 26 days in filing the
Appeal is hereby condoned.
5. Accordingly, the Application stands disposed of.
LPA 535/2026
6. The present intra court Appeal has been filed by the Appellant
assailing the order dated 09.04.2026 (“ Impugned Order ”) passed by the
learned Single Judge in the Writ Petition being W.P.(C) 2355/2024 (“ Writ
Petition ”).
7. The brief facts leading to the filing of the present Appeal are as under:
a. The Appellant Bank claims that M/s Santosh Overseas Limited-
Respondent No. 6 had availed various credit facilities from a
consortium of lenders led by IDBI Bank Limited, and Respondent
No. 1 acted as a personal guarantor for the said credit facilities of
Respondent No. 6.
b. Due to certain alleged financial irregularities, the Appellant Bank
declared the account of M/s Santosh Overseas Limited-
Respondent No. 6 as ‘fraud’ on 11.11.2019. Subsequently, IDBI
Bank Limited filed an FIR being RC No. 219 2020 E0005, with
the CBI on behalf of all the lenders on 14.01.2020 and
accordingly, CBI Complaint No. CBI/44/2024 (RC No.
Signature Not Verified
Signed By:NEELAM
SHARMA
Signing Date:31.07.2026
18:16:09
LPA 535/2026 Page 2 of 5

219/2020) is pending adjudication before the learned ACJM-02-
cum-ACJ, Rouse Avenue Courts (“ Trial Court ”).
c. Due to apprehension that the guarantors of Respondent No. 6 may
flee to foreign jurisdiction to avoid repayment of the outstanding
dues, the Appellant vide letter dated 29.07.2020 requested
Respondent No. 2 to issue a Look Out Circular (“ LOC ”) against
the directors and guarantors of Respondent No. 6 Company,
including Respondent No. 1.
d. Aggrieved by the LOC opened against Respondent No. 1, the
Writ Petition was instituted by Respondent No. 1 seeking setting
aside of the LOC, which was allowed by way of the Impugned
Order. Aggrieved thereby, the present Appeal has been filed by
the Appellant.
8. Learned Counsel for the Appellant submitted that the learned Single
Judge in the Impugned Order has proceeded on the assumption that the right
to travel is an absolute right, however, the said right can be regulated by way
of the procedure established by law. It was further submitted by the learned
Counsel for the Appellant that reliance has been placed in a mechanical
manner by the learned Single Judge on the decision in Shalini Khanna v.
Union of India , 2024 SCC OnLine Del 837.
9. Learned Counsel for the Appellant submitted that the learned Single
Judge failed to consider that the judgment passed by the High Court of
Judicature at Bombay in Viraj Chetan Shah v. Union of India , 2024 SCC
OnLine Bom 1195, is under challenge before the Hon’ble Supreme Court in
SLP (C) Nos. 17194-17230/2024 and has not attained finality.
Signature Not Verified
Signed By:NEELAM
SHARMA
Signing Date:31.07.2026
18:16:09
LPA 535/2026 Page 3 of 5

10. Heard the learned Counsel for the Appellant and perused the material
placed on record. This Bench in Bank of Baroda v. Surender Kumar
Bansal, 2026 SCC OnLine Del 4574, held that the power to issue an LOC is
an exceptional coercive measure that directly impinges upon an individual’s
fundamental right to travel. Accordingly, it was further held that such power
must be exercised with due care and caution, and only in exceptional
circumstances. Therefore, in the absence of compelling reasons, no person
may be deprived of the right to travel abroad.
11. Further, this Bench in Bank of Baroda (supra) noted that the High
Court of Judicature at Bombay in Viraj Chetan Shah (supra) has quashed
certain clauses of different Office Memorandums, which regulate issuance
of LOC, to the extent that they permitted Chairman, Managing Directors and
Chief Executive Officers of all public sector banks to make request for
issuance of LOC. Moreover, there is no stay of the operation of the
judgement in Viraj Chetan Shah (supra) by the Supreme Court. Accordingly,
LOCs issued at the instance of public sector banks are liable to be quashed.
12. Considering that Respondent No. 1 is not an accused in the
proceedings pending adjudication before the learned Trial Court, in terms of
the decisions in Bank of Baroda (supra) and Viraj Chetan Shah (supra), we
do not find any infirmity with the Impugned Order passed by the learned
Single Judge.
13. Further, it is noted that in case Respondent No. 1 intends to travel
abroad, adequate safeguards are put in place in the Impugned Order, wherein
it is made clear that Respondent No. 1 shall obtain prior permission from the
learned Trial Court before travelling.
Signature Not Verified
Signed By:NEELAM
SHARMA
Signing Date:31.07.2026
18:16:09
LPA 535/2026 Page 4 of 5

14. Resultantly, the present Appeal is hereby dismissed. Pending
Application(s), if any, stands disposed of. There shall be no order as to costs.
TEJAS KARIA, J
DEVENDRA KUMAR UPADHYAYA, CJ
JULY 28, 2026
St
Signature Not Verified
Signed By:NEELAM
SHARMA
Signing Date:31.07.2026
18:16:09
LPA 535/2026 Page 5 of 5