S.RAVINDRA BHAT, J.

1. This order will dispose of the Defendant Nos 1, 2, 4 and 7’s (hereafter called “the applicants”) temporary injunction application, (IA 9920/09) seeking a restraint upon the plaintiff’s going ahead with its proposed rights issue, whereby it intends to offer 1,50,30,003 shares of the face value of Rs. 10, at a premium of Rs. 30, thus proposing to realize Rs. 60 crores.

2. The facts necessary to decide the case are that HQRL Pvt. Ltd. (hereafter “HQRL”) was incorporated as a special purpose vehicle (SPV) in August, 2001, with the intention, of taking over assets of, and managing, the Hotel Ashok Yatri Niwas as a part of the disinvestment scheme. This was effectuated by a Scheme of “Arrangement of Demerger” (sanctioned by the Central Government on 5th July, 2002) between India Tourism Development Corporation [ITDC] (of which Hotel Ashok Yatri Niwas was a unit) and HQRL.

3. The Central Government later invited bids for the purchase of 99.97% of the total voting equity share capital of HQRL; Moral Trading and Investment Ltd. (“Moral”) met the parameters of the bid. The shares in HQRL were sold to it through two share purchase agreements dated 8th October, 2