By way of background, the defaulter-company had taken a loan from a consortium of banks. In 2016, a dispute arose between the promoters of the company and they suffered an immense loss. As a result, the company defaulted in the repayment of bank loans.
Consequently, the banks initiated proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFEASI Act) against the company to discharge in full its outstanding liability in a sum of ₹2277.68 crores, including interest.
Insolvency proceedings were also initiated against the company and personal guarantors, including the petitioner, resulting in the issuance of LOCs that restricted their ability to travel abroad.
This situation ultimately obstructed the petitioner and others from conducting business activities overseas.
This led the petitioner to the filing of the present plea before the High Court.
Source: Barandbench
