The Calcutta High Court, in a recent matter, observed held that in the absence of any material establishing fraud or a cognizable offence, the issuance of a Look Out Circular against the erstwhile director of a company undergoing insolvency proceedings was unsustainable.
Accordingly, the Calcutta High Court quashed the Look Out Circular issued at the instance of the Serious Fraud Investigation Office (SFIO) against Sunil Kumar Agarwal, the erstwhile director of an insolvent company which was involved in the construction business in India, specializing in the infrastructure construction segment including buildings and highways.
The company was admitted into Corporate Insolvency Resolution Process (CIRP) on 30…