# BANK OF BARODA vs. VINEET GUPTA & ORS.

> HC judgment dated 2026-07-28. Citation: TCN-2026-HC-00046. Bank of Baroda (Appellant) filed an intra-court appeal against a Single Judge's judgment dated…

- **Court:** HC
- **Order date:** 28 Jul 2026
- **Citation:** TCN-2026-HC-00046
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/bombay-high-court-panaji/bank-of-baroda-vs-vineet-gupta-ors-vwjh7

## Summary

### Background

Bank of Baroda (Appellant) filed an intra-court appeal against a Single Judge's judgment dated 10.02.2026, which quashed Look Out Circulars (LOCs) issued against Respondent Nos. 1 and 2 (Vineet Gupta & Ors.). These respondents were promoters/directors of M/s Parabolic Drugs Limited, a borrower company whose loan account was classified as a Non-Performing Asset (NPA) in 2013 and declared 'fraud' in 2016. A Corporate Insolvency Resolution Process (CIRP) was initiated against the borrower company in 2018. Subsequently, the CBI and Enforcement Directorate registered an FIR and ECIR, respectively, against the borrower company and Respondent Nos. 1 and 2. The Appellant Bank requested the LOCs due to apprehension that the respondents might flee to foreign jurisdiction to

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## Facts

The Appellant Bank claims that M/s Parabolic Drugs Limited (Borrower Company) availed various credit facilities from a consortium of lenders, including the Appellant Bank.

Respondent Nos. 1 and 2 acted as Promoters/Directors of the Borrower Company.

The loan account of the Borrower Company was classified as a Non-Performing Asset on 30.03.2013.

The loan account was subsequently declared 'fraud' on 30.05.2016.

On 23.08.2018, M/s Weather Makers Private Limited filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, initiating Corporate Insolvency Resolution Process (CIRP) against the Borrower Company before the National Company Law Tribunal (NCLT), Chandigarh.

The CIRP was admitted vide order dated 30.08.2018.

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## Issues and analysis

### Issue 1: Whether the learned Single Judge erred in quashing the Look Out Circulars (LOCs) issued against …

**Ratio:** The power to issue an LOC is an exceptional coercive measure that directly impinges upon

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**Reasoning:** The High Court found no infirmity in the Impugned Judgment. It noted that the Single

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**Interpretation:** The court interprets the legal framework governing LOCs, emphasizing their

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**Application:** The court applied these principles and found that the Single Judge's decision

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## Parties

- **Judges:** THE CHIEF JUSTICE…; TEJAS K…
- **Appellants:** Bank of B…; Respondent Nos. 1…
- **Respondents:** M/s Parabolic…; VINEET…; +1 more
- **Other parties:** M/s Weather…
- **Advocates:** Sougat…; R. Gayathri…; +8 more

## Timeline

- **2013-03-30 — Loan Account Classificat…**: The loan account of the Borrower Company was…
- **2016-05-30 — Loan Account Declared…**: The loan account of the Borrower Company…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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