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VIBHU BAKHRU
Shipra Estate Limited – Appellant
Versus
Indiabulls Housing Finance Limited – Respondent
JUDGMENT
Vibhu Bakhru, J. - Introduction
1. The petitioners have filed the present petition under Section 9 of the Arbitration and Conciliation Act, 1996 (hereinafter the A&C Act) inter alia, praying that Indiabulls Housing Finance Limited (arrayed as respondent no. 1 in these petitions and hereafter referred to as Indiabulls) be restrained from giving effect to the Legal Notice dated 03.07.2021 (hereafter the impugned notice) for the sale of 100% of the equity shares of Kadam Developers Private Limited (hereafter Kadam).
2. Kadam is a wholly owned subsidiary of Shipra Estates Limited (hereafter SEL). SEL held 9,800/- shares constituting 98% of the issued and paid-up equity shares of Kadam. Mohit Singh and Bindu Singh, two individuals, held 100 equity shares each of Kadam constituting the balance 2% of the issued equity shares as nominees of SEL. Kadam is also a part of the Shipra group of companies. The shareholders of Kadam (SEL, Mr Mohit Singh and Ms Bindu Singh) pledged their equity shareholding in Kadam (hereafter the Pledged Shares) to secure financial loans extended by Indiabulls to SEL, Shipra Leasing Private Limited (hereafter SLPL) and Shipra Hotels Limited (hereafter SHL).
The invocation of pledge had become final and any dispute regarding the value of the shares could be adjudicated by the Arbitral Tribunal. The agreement to accept the consideration for the Property i....
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.
Sale of pledged shares by creditor during CIRP moratorium violates Section 14 despite possession transfer on invocation; ownership remains with debtor. Sold listed shares unrestorable; debt reduces b....
A pledgee has the unfettered right to invoke the pledge and sell pledged shares upon default, governed by the Indian Contract Act, regardless of prevailing economic conditions.
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....
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