Amandeep Singh Bhatia & Ors Vs. Vitol S.A. & Anr [Company Appeal (AT) (Insolvency) No.502 of 2018] - Synopsis
Team SoOLEGAL 12 Mar 2021
In this case, Amandeep Singh Bhatia & Ors Vs. Vitol S.A. & Anr [Company Appeal (AT) (Insolvency) No.502 of 2018], the appellants are the Ex-Directors, as well as personal guarantors on behalf of the Corporate Debtor which is under liquidation. While the liquidation proceedings were taking place, one of the Operational Creditors had filed an application stating that directions should be given to the 2nd Respondents including appellants to submit their passports to the Registry of the Tribunal. In a similar case, the Supreme Court of India had ordered that the Managing Director and Directors JIL and JAL will be allowed to leave the country only with prior permission, and also NCLT, Mumbai bench had passed an order of prohibition to protect interests of the stakeholders and also to make sure that the people who are facing the ongoing proceedings should not be allowed to leave the country without prior permission from the Court.

According to the Bench, it cannot be stated that the Adjudicating Authority is not empowered to order the ex-Directors not to leave the country without the prior authorisation of the Adjudicating Authority. Furthermore, any order passed under the statute cannot be found to be in violation of Article 21 of the Constitution of India. The Bench had also stated that, the Adjudicating Authority had not stopped the travel of the appellants, but only noted that if they intend to leave the country, they should be allowed only after taking permission from the Adjudicating Authority. The order cannot however be regarded as a permanent injunction against the appellants. As no merit was found hence, the appeal was dismissed. 

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