Mumbai: Wilful defaulter allowed to fly to US to study at Harvard

Mumbai: Wilful defaulter allowed to fly to US to study at Harvard

Narsi BenwalUpdated: Sunday, March 08, 2020, 05:19 AM IST
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Bombay High Court | File pic

Mumbai: Taking note of the fact that he has paid over $42,500.00 US dollars for completing his course, the Bombay High Court, last week allowed a wilful defaulter to fly to the United States of America (USA). The defaulter had sought permission to fly to the USA so as to complete his management course at the Harvard Business School, Boston.The defaulter – Punit Agarwal had petitioned a bench of Justices Amjad Sayed and Anuja Prabhudesai as there were restrictions on him from leaving India. The restriction was by virtue of a lookout circular, issued against him at the insistence of the Union Bank of India, which had declared him a wilful defaulter.

According to Agarwal, he was one of the directors of Promart Retail India Private Limited, the firm that obtained a loan from the Union Bank of India for a sum of Rs. 62,90,00,000. He stood guarantor in respect of this loan. However, after making some payments, the company defaulted on the loan and thus he was declared as a defaulter.Additionally, Agarwal was not aware of the lookout circular issued against him and also the restrictions. “It was in the month of February when I was traveling to Dubai the immigration officials at the Mumbai International Airport Ltd stopped me from boarding the flight to Dubai. It is then that I learned that a lookout circular has been issued against me,” Agarwal told the judges.

Agarwal, accordingly argued that the restrictions imposed upon his traveling were violating his personal liberty and freedom of movement.In his plea, Agarwal highlighted that in 2018, he had registered himself for the Owner/President Management (OMP) Program which Harvard Business School, Boston, USA conducts in their campus. He apprised the bench of the fact that he has completed the first and second units of the program but is yet to complete the last one, which is scheduled from March 8 to March 26, 2020, and that he has also obtained US visa for the same.Seeking a nod, Agarwal further highlighted that he has been cooperating with the inquiry in relation to the default committed by the Company.Having considered the submissions, Justice Sayed said, “We are of the view that Agarwal cannot be declined permission to travel to Boston, USA, for the program being conducted at Harvard Business School, Boston, USA.”

“From the documents placed on record, it is clear that he has already made payment of an amount of $42,500.00 for the final unit of the program. We are told that no criminal proceedings are pending in any court against him and there are no restrictions on his movement by any court,” Justice Sayed noted while allowing him to fly to US subject to an undertaking that he should return India by March 29, 2020.

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