Pranav B Prem

The National Company Law Tribunal (NCLT), Ahmedabad Bench, has allowed Zankarsinh Kishorsinh Solanki, the personal guarantor of Torque Automotive Private Limited, to travel to the United States, despite acknowledging serious reservations regarding his conduct in the insolvency process. The Bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma stated that it was taking a lenient view solely because the immigration status and future prospects of Solanki’s two minor children were tied to his continued possession of a US Green Card.

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Solanki had sought permission to travel abroad between October 18 and December 27, 2025, asserting that Green Card regulations require the holder to visit once every 180 days to retain status beyond September 10, 2026, and that any lapse would jeopardize his children’s education and long-term prospects. Solanki filed for insolvency resolution in March 2024, disclosing debt liability of ₹108.82 crore. His repayment plan offering ₹50 lakh was rejected by creditors in November 2024, and bankruptcy proceedings were admitted on October 10, 2025, under Sections 121 and 122 of the Insolvency and Bankruptcy Code (IBC).

Creditors, led by Bank of Baroda, strongly objected to the foreign travel request, highlighting alleged nondisclosure of two immovable properties, non-disclosure of two bank accounts in initial filings, and the applicant’s declaration of “nil” value in respect of an unexplained investment of ₹1.63 crore in his repayment plan. They also pointed out that Solanki had withheld information regarding an FIR registered under Sections 120B, 420, 467 and 471 of the Indian Penal Code, and argued that allowing a personal guarantor with an existing Green Card to travel risked him absconding.

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The Tribunal noted that Solanki had admitted to investing ₹1.63 crore in a US-based company, while simultaneously claiming that the entity was now untraceable. It further recorded that the schedule of foreign assets in his Income Tax Return for AY 2025–26 contained no mention of foreign assets or income. The Bench observed that these concerns of the creditors had “merit.” However, the Tribunal stated, “Considering the dependency of minor children's immigration status on the Applicant, their study and future career as claimed by the Applicant, a lenient view is taken.”

Although Solanki sought travel for 70 days, the Tribunal limited the permission to December 10, 2025 to January 31, 2026, subject to strict safeguards. Solanki is required to deposit ₹40 crore as security in a special bankruptcy interest-bearing account within seven days, to be refunded only if he returns in accordance with the order and forfeited in case of non-compliance. Additionally, Solanki must execute bonds of two solvent sureties of ₹50 crore each, secured by FDRs or immovable property, and each surety must give an oath-bound assurance that Solanki will return to India and will not permanently migrate until the conclusion of the bankruptcy proceedings.

The Tribunal further directed that Solanki’s father must remain present in all hearings as his authorised representative during his absence, while the Bankruptcy Trustee must file compliance reports every 15 days confirming Solanki’s virtual participation in proceedings during the travel period. The application was allowed subject to these conditions.

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Despite expressing clear concerns over asset non-disclosure, US investments, pending criminal proceedings and the risk of flight, the NCLT Ahmedabad permitted Solanki to travel abroad strictly because of the immigration dependency of his minor children. The order enforces significant safeguards—including a ₹40-crore security deposit, two ₹50-crore sureties, and continuous monitoring—making the travel permission conditional and closely regulated.

Appearance

For Applicant: Advocate Natasha Shah

For Respondent: Advocate Nalini Lodha for Bank of Baroda; Advocate Sunil Kumar for ASREC India Limited.

Cause Title: Zankarsinh Kishorsinh Solanki v. Kanhaiyalal Salawat & Ors.

Case No: IA/1214(AHM)2025 in CP(IB)/395(AHM)2025

Coram: Judicial Member Shammi Khan, Technical Member Sanjeev Sharma