Delhi Court issues arrest warrants; Look Out Circular after decree remains unpaid

New Delhi [India], January 24 : Observing that a lawful money decree had been rendered meaningless by sustained attempts to evade execution, a Delhi court has ordered the issuance of arrest warrants and a Look Out Circular (LOC) against a judgement debtor in execution proceedings initiated by an 86-year-old decree holder.
The District Judge of Tis Hazari Court passed the directions while dealing with the execution of a decree dated 27 August 2024 for the recovery of more than Rs 83 lakh along with interest and costs, holding that arrest was the only remaining mode through which the decree could be enforced.
The court directed that the warrants of arrest be executed through the SHO of Police Station Sadar Bazar and further ordered the issuance of an LOC through the concerned Deputy Commissioner of Police to ensure that the judgement debtor is apprehended upon his return to India.
The court also authorised the son of the decree holder, Vikas Sekhri, to accompany police officials during the execution of the arrest warrants.
Appearing for the decree holder, Advocate Ravi Drall submitted that despite persistent efforts, the decree had remained unexecuted, as the judgement debtor had deliberately concealed his whereabouts and systematically divested himself of assets. A proxy counsel also appeared on behalf of the decree holder during the proceedings.
The court took on record a detailed compliance report filed by Punjab & Sind Bank, confirming that several properties located at Gali Saras Wali, Tilak Bazar, Delhi, stood mortgaged and that possession had already been taken by the bank after the loan accounts were declared in default. In view of this disclosure, the bank was discharged from the execution proceedings for the present.
The court further noted material indicating that the judgement debtor had transferred other immovable properties to close relatives shortly before the decree was passed, apparently with the intent to defeat execution. The remaining properties were found to be mortgaged with different banks, with possession already taken over due to defaults.
According to the decree holder, the transaction dates back to 2023, when he deposited funds at the HDFC Bank, Ashok Vihar branch, and was allegedly induced to advance the amount as a loan on assurances regarding the borrower's financial standing and ownership of multiple properties in Ashok Vihar and central Delhi. It was alleged that thereafter the borrower sold five properties in Ashok Vihar, mortgaged other properties with three banks, raised loans amounting to approximately ₹35 crore, and subsequently absconded with his family.
During submissions, Advocate Ravi Drall informed the court that the current address of the judgement debtor is not known, though he has been seen visiting his shop at Khari Baoli, Delhi, and is believed to be presently in the United States, where his wife underwent medical treatment.
The court also took note of records showing that cases under Section 138 of the Negotiable Instruments Act are pending against the judgement debtor and his wife, in which they have already been declared proclaimed offenders, besides several other civil and criminal proceedings pending against them.
After considering the overall conduct placed on record, the court held that the judgement debtor was deliberately evading the process of law and preventing the decree holder from enjoying the fruits of the decree. It concluded that execution was not possible except through arrest, as all other modes had failed.
The matter has been listed for a compliance report on 27 February 2026, with directions for issuance of process upon filing of the requisite process fee.