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SHEKHAR B. SARAF
Manav Investment And Trading Company Limited – Appellant
Versus
DBS Bank India Limited – Respondent
ORDER :
1. This is an interlocutory application seeking injunction restraining the respondent and its men, agent and servants from giving any effect or further effect to the letters dated 23rd February, 2022, being Annexures “P” and “Q” of this petition. Both these notices are for the purpose of invoking the pledge and transferring the pledged shares in favour of the respondent.
2. It is to be noted that in an earlier suit being C. S. No. 138 of 2021 filed by the petitioners herein, an interim order was passed on 3rd August, 2021 restraining the respondents from proceeding with sale of the pledged shares. Subsequently, a vacating application was filed by the respondent which was taken as the affidavit in opposition to the main application and the matter was heard out. Upon hearing both the parties, this Court had passed an order on February 16, 2022 holding that the notices dated July 17, 2021 for immediately recalling of the term loan facility and working capital facility were in tune with the agreements entered into between the parties. However, the Court held that the notices were not in terms of Section 176 of the Indian Contract Act, 1872. After having examined the judgment cite
24. Point of Law : One notice in contradistinction to giving a shorter period in another notice for shares of the same company that are pledged with the defendant does not stand to reason and is acco....
The judgment emphasizes the requirement of reasonable notice for the sale of pledged goods and highlights the impact of the Depositories Act on the rights of redemption against third parties.
The main legal point established in the judgment is the interpretation and application of sections 176 and 177 of the Indian Contract act, 1872 in the context of the sale of pledged shares and the ri....
An arbitral tribunal, while adjudicating an application for interim protection under Section 17, does not determine the lis between the parties.
The court established that a notice of sale of pledged goods must convey a clear intention to sell, and that the failure to execute an award against a principal debtor does not negate the creditor's ....
The validity of the sale/e-auction notice under the SARFAESI Act and the Security Interest (Enforcement) Rules, 2002.
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