The Court dismissed the Notice of Motion seeking a restraint order over shares. The Court held that since the defendant had sold all disputed shares, no interim relief could be granted. No order as to costs was made.
Section 151 CPC notice of motion dismissed by order dated September 23, 2014.
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nms3848-08.doc
sg
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
NOTICE OF MOTION NO.3848 OF 2008 IN SUIT NO.3102 OF 2008
Tirupati Agencies Pvt. Ltd. ...Plaintiff vs Amrutlal J. Gandhi And 2 Ors. ...Defendants.
...Defendants.
Mr. S.C. Naidu, a/w. Mr. T.R. Yadav, i/b. C.R. Naidu & Co., for the Plaintiff.
Ms. Hemlata Kadam, i/b. Mr. Yogesh P. Gandhi, for Defendant No.1.
CORAM : S.C. GUPTE, J.
DATED : SEPTEMBER 23, 2014
P.C. :
. The Notice of Motion seeks a restraint order against Defendant Nos. 1 and 2 regarding transfer of 10,20,000 shares of Swan Mills Ltd. of the face value of Rs. 2/- each. It is the case of the Plaintiff that these shares together with further 2,30,000 shares of Swan Mills Ltd. of the face value of Rs.2/- each, were pledged by the Plaintiff with Defendant Nos. 1 and 2 for the loan of Rs.1.20 crores given by Defendant No.1 to the Plaintiff. It is the case of the Plaintiff that 2,30,000 shares of Swan Mills Ltd., out of the said 12,50,000 shares, were returned by Defendant No.1 to the Plaintiff against repayment of the said loan and that further 10,20,000 shares were retained by Defendant No.1. It appears that the account of Defendant No.1 was frozen for a certain period, during which no transactions could be effected by Defendant No.1 in respect of any of his shares in the account. By an order dated 21 December 2006 SEBI has clarified that the restrictions imposed by SEBI in respect of the account of Defendant No.1 would apply,
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nms3848-08.doc
excepting the shares relating to M/s. Swan Mills Ltd. It is the Plaintiff's case that there thus being no restriction on the transfer of shares of Swan Mills Ltd., the interim relief prayed for by the Plaintiff in the Notice of Motion, may be granted. On the other hand, it is submitted by Defendant No.1 in his reply to the Notice of Motion that the disputed shares in question have already been sold by Defendant No.1 during the course of his routine transactions. The details concerning the months and the number of shares sold in the particular months, have been furnished by Defendant No.1 in his affidavit-in-reply to the Notice of Motion together with the statement relating to his Demat account in support of the sales/tradings. The Demat account discloses a closing balance of zero in respect of the shares of M/s. Swan Mills Ltd.
( S.C. GUPTE, J. )
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Tirupati Agencies Pvt. Ltd.
Amrutlal J. Gandhi
S.C. GUPTA, J.
As recorded by the court registry
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