# In the matter of Ghanshyam Pandey Vs. Union of India & Anr. W.P.(C) 3545-2022

> HC judgment dated 2023-02-15. Citation: TCN-2023-HC-00083. Ghanshyam Pandey filed a writ petition challenging the issuance of a Look Out Circular (LOC)…

- **Court:** HC
- **Order date:** 15 Feb 2023
- **Citation:** TCN-2023-HC-00083
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/ghanshyam-pandey-vs-union-of-india-anr-wp-f71c55ad

## Summary

### Background

Ghanshyam Pandey filed a writ petition challenging the issuance of a Look Out Circular (LOC) against him. The LOC was issued at the request of the Serious Fraud Investigation Office (SFIO) in connection with an investigation into Shilpi Cable Technologies Ltd. Pandey, a former CEO and whole-time director of Shilpi Cable, was stopped at Indira Gandhi International Airport while intending to travel to the U.S.A. The SFIO is investigating allegations of fraudulent transactions and siphoning of funds involving Shilpi Cable and its group companies. The petitioner claims he is not a promoter and cooperated with the investigation.

## Facts

Ghanshyam Pandey, the petitioner, was the CEO of Shilpi Cable Technologies Ltd from 2006 to 2012 and a whole-time director from 2013 to 2017, also a member of the audit committee from 2011 to 2017. He was stopped at Indira Gandhi International Airport on November 24, 2021, due to a Look Out Circular (LOC) issued by the Serious Fraud Investigation Office (SFIO). The SFIO is investigating Shilpi Cable for alleged fraudulent transactions and siphoning of funds. Shilpi Cable is undergoing Corporate Insolvency Resolution Process (CIRP) initiated by Macquarie Bank Limited, and is now in liquidation. An audit revealed preferential and fraudulent transactions causing losses to secured creditors. Shilpi Cable allegedly transferred over Rs. 800 crores to related companies in

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## Issues and analysis

### Issue 1: Whether the Look Out Circular (LOC) issued …

**Ratio:** LOCs can be issued in cognizable offenses under IPC or other penal laws, or in

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**Reasoning:** The court reasoned that the petitioner held significant positions in Shilpi Cable during

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**Interpretation:** The court interpreted the guidelines for issuing LOCs, emphasizing the need to

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**Application:** The court applied the ratio to the specific facts of the case, considering the

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## Parties

- **Judges:** PRATHIBA M.…
- **Appellants:** GHANSHYAM…
- **Respondents:** Shilpi Cable…; UNION OF INDIA &…
- **Other parties:** Kohi…

## Timeline

- **2006-01-01 — Petitioner…**: Ghanshyam Pandey was the CEO of Shilpi…
- **2011-01-01 — Petitioner in Audit…**: Ghanshyam Pandey was a member of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 66 — Fraudulent trading or wrongful trading](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-66)

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