JUDGMENT :

Krishna Rao, J.

1. The petitioners/plaintiffs have filed the instant application being GA 7 of 2022 praying for following reliefs :

“(a) An order be passed restraining the respondents forthwith from giving any effect to or giving any further effect to and/or to act in furtherance of and in pursuance of the purported equitable mortgage of the said property alleged to have created in favour of the respondent – No.3.

(b) An order be passed appointing a fit and proper person as the Receiver/Special Officer to do the following:

i. To take custody of the deeds/documents in respect of the said property in relation to the creation of the purported mortgage.

ii. To take custody of all documents in relation to the purported creation of mortgage in respect of the said property.

iii. To deposit such documents in a sealed cover before this Hon’ble Court, pending disposal of the instant suit.

(c) An order be passed restraining the respondents forthwith from seeking to enforce such purported equitable mortgage by taking any coercive steps against the petitioner;

(d) An order be passed restraining the respondents from giving any effect and/or further effect to and/or from taking any steps in terms of and in pursuance of the corporate guarantee purportedly given by the petitioner No. 1 to the respondent No. 7;

(e) An order of injunction be passed restraining the respondent No. 7 from disbursing any further sum in favour of the respondent No. 3 against and/or in connection the purported creation of equitable mortgage of the said property of the respondent No. 3 against and/or in connection the purported creation of equitable mortgage of the said property.

(f) Ad-interim orders in terms of the prayer made above;

(g) Such further or other order or orders be passed and/or direction or directions be given as this Hon’ble Court may deem fit and proper.”

2. The respondent no. 7 has filed an application being GA. 8 of 2022 praying for revocation of Leave granted under Clause 12 of the Letters of Patent.

3. The petitioner No.1 was earlier known as Falcon Footwears Industries Limited. The entire shareholding of the petitioner no.1 is owned by the petitioners Nos. 2 to 5 having different number of shares.

4. The respondent no. 2 is the wife of the respondent no.1 and the respondent no. 5 is the wife of respondent no. 4. The respondent nos. 1 and 2 are the principle share holders of the respondent no. 3. The respondent nos. 4 and 5 are the principle share holders of respondent no. 6.

5. The respondent no. 7 is the banker of the respondent no. 3 and had granted substantial loan and advances to the respondent no. 3.

6. The petitioner no.1 was the sole and absolute owner of the entirety of the premises no. 6, Jessore Road (North) having 24 cottahs with the basement plus ground floor and four storied brick built building standing thereon. On 26th April, 2011, the petitioner no. 1 sold a portion of the fourth floor of the building at the said property comprising an area of 1250 sq. ft to one Sheela Sharma.

7. The petitioner No. 1 was looking for the buyers. The respondent no. 4 who is personally known to the directors of the petitioner no. 1 requested the shareholders of the petitioner no. 1 to transfer the property to the respondent no. 1 and 2 on the terms proposed by the respondents earlier. It was ultimately agreed and decided that the portion sold to Sheela Sharma would be transferred to respondent nos. 1 and 2 by the petitioner nos. 2 to 5. The petitioner nos. 2 to 5 will transfer all their shares held in the petitioner no. 1 to the respondents at the total consideration of Rs. 17,68,37,500/-. It was agreed that the sum of Rs. 51,00,000/- would be paid by the respondent no.1 and 2 to the petitioner no. 1 before signing of the agreement and subject to such payment, an agreement would be entered into by and between the shareholders of the petitioner no. 1 and the respondent no.1 and 2. It was further agreed that the balance amount of Rs. 17,17,37,500/-would be pa