Gujarat High Court Order.pdf

The Gujarat High Court heard a petition by Bindu Tibrewal challenging a Lookout Circular issued by the Ministry of Home Affairs under instructions from a bank, citing it as contrary to an Office Memorandum and in violation of Articles 14 and 21 of the Constitution of India. The petitioner's advocate referenced a previous order by a coordinate bench of the court, which had quashed a similar Lookout Circular for the petitioner's husband. The bank's advocate argued that the petitioner's personal insolvency application before the NCLT, Ahmedabad, imposed an interim moratorium, staying all legal proceedings. However, the court disagreed, stating that the moratorium did not apply in this case, as the petition challenged the issuance of the Lookout Circular on grounds that it was issued before the petitioner was declared a willful defaulter. The court agreed with the petitioner's advocate that observations made by the coordinate bench in the previous order would also apply to this case, as the bank had not questioned that decision. The court ultimately ruled in favor of the petitioner, citing the lack of initiation of proceedings against her and the previous order quashing the declaration of willful defaulters.