Disposed

Icici Bank Ltd. v. Bhawani Shankar Sharma and 4 Others

Bombay HC3 Aug 2017NMS/1762/2019

Case brief

AI extract

What is this about?

This judgment disposes of Commercial Suit 420 of 2017 and Suit 79 of 2016 by consent. The order directs the sale of shares via a block deal by ICICI Bank, with provisions for differential recovery and specific interest payments if targets are not met, while modifying previous ad-interim orders regarding mortgaged property.

What did the court decide?

Order directed sale of shares by block deal; decree for differential amount if sale yield < Rs. 6.25 Crores; decree for accrued interest of Rs. 18 Lakhs payable by 26th August 2017; continuation of ad

Icici Bank Ltd. Vs Bhawani Shankar Sharma and 4 Others — Company and Corporate | Bombay HC (2017)

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901-COMS420-17+.DOC

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Atul

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION IN ITS COMMERCIAL DIVISION

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COMMERCIAL SUIT NO. 420 OF 2017

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WITH

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NOTICE OF MOTION (L) NO. 3608 OF 2016

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Supreme Infrastructure India Ltd & Ors…Plaintiffs
Versus
ICICI Bank Ltd & Anr…Defendants

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AND

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SUIT NO. 79 OF 2016 WITH

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NOTICE OF MOTION NO. 753 OF 2016 AND

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NOTICE OF MOTION (L) NO. 2461 OF 2016 AND

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NOTICE OF MOTION NO. 1122 OF 2017

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...Plaintiff

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ICICI Bank Ltd...Plaintiff
Versus
Bhawani Shankar Sharma & Ors...Defendants

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Page 1 of 5
3rd August 2017

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901-COMS420-17+.DOC

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Mr Zal Andhyarujina, with Shruti Sardessai, & Mahesh Londhe, i/b
Sanjay Udeshi & Co., for the Plaintiff in Coms/420/17 &
Defendant in S/79/2016.
Mr SU Kamdar, Senior Advocate, with K Dastoor, i/b Phoenix
Legal, for ICICI Bank, Plaintiff in S/79/2016 & Defendant in
Coms/420/17.

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Mr Arif Doctor, with Ishita Advani, i/b Desai & Diwanji, for
Defendant No. 2 in Coms/420/17.
Ms Neha Badlani, with Apoorva Negal, representatives of the ICICI
Bank, present.

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CORAM:G.S. PATEL, J
DATED:3rd August 2017

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PC:-

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1.Commercial Suit No. 420 of 2017 and Suit No. 79 of 2016 are
both disposed of by consent in the following terms which are
submitted as minutes of the order with handwritten changes.

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2. The minutes of the order with handwritten changes are taken on record and marked “X” for identification with today’s date. This is only for identification purposes.

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(1) ICICI Bank Ltd shall endeavour to sell 6,83,000 shares of Supreme Infrastructure India Limited ( “the said shares” ), by way of a block deal, in accordance with applicable laws, on or before 16th August 2017 as per the prevailing market rate on the relevant date ( “block deal” ). In the event that a willing purchaser comes forward to purchase the said shares on a block deal

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Page 2 of 5

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3rd August 2017

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901-COMS420-17+.DOC

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basis, ICICI Bank will sell him said shares and such
purchaser on a block deal basis on or before 16th
August 2017.

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(2) For avoidance of doubt, it is clarified that in the event, the block deal, as envisaged in clause (1) above, does not conclude by 16th August 2017, ICICI Bank Limited shall be entitled to sell the shares to any third party in the open market without any further reference to this Hon’ble Court.

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(3)Upon sale of the said shares by way of block deal as per
clause (1) or to any third party as per clause (2), and in
the event that ICICI Bank Limited realizes any amount
less than Rs. 62,528,650/- (Rupees Six Crores Twenty
Five Lakhs Twenty Eight Thousand Six Hundred and
Fifty only) i.e., the purchase consideration for the said
shares at the base rate of Rs. 91.55 per share, the
closing price as on 26th April 2017, there shall be a
decree in Suit No. 79 of 2016 in favour of ICICI Bank
Limited and against the Defendant Nos. 1 to 5 for the
differential amount. This decree shall carry further
interest at the rate of 12% per annum on the differential
amount so calculated till the date of payment and
realization. The decree will be immediately executable.
The drawn up decree is dispensed with.

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Page 3 of 5
3rd August 2017

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901-COMS420-17+.DOC

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(4) Defendants Nos. 1 to 5 shall be, jointly and severally, obligated to pay the said differntial amount within 10 (ten) days from the date of:

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(a) the block deal as per clause (1) or (b) sale of all of the said shares as per clause 2.

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as may be the case.

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(5)Defendants Nos. 1 to 5 shall be, jointly and severally,
obligated to pay interest of Rs. 1,809,048/- (Rupees
Eighteen Lakhs Nine Thousand and Forty Eight only)
(“the said interest”), within 10 (ten) days from 16th
August 2017. The said interest is calculated at the rate
of 12% per annum on the share price of Rs. 91.55 per
share (i.e. the closing price as on 26th April 2017) for
the period from 21st May 2017 till 16th August 2017 for
the said shares. In an event that the said interest is not
paid within 10 days from 16th August 2017, there shall
be a decree in Suit No. 79 of 2016 in favour of ICICI
Bank Limited and against the Defendant Nos. 1 to 5 for
the payment of the said interest. This decree shall carry
further interest at the rate of 12% per annum on the said
interest amount till the date of payment and realization.
The decree will be immediately executable. The drawn
up decree is dispensed with.

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(6) Any previous arrangements only with regard to this 6,83,000 shares stand modified to the extent necessary by this order. For avoidance of doubt, it is further

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Page 4 of 5

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3rd August 2017

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901-COMS420-17+.DOC

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clarified that all other liabilities of Supreme
Infrastructure India Limited and all obligors with
respect to the facilities granted by ICICI Bank Limited
to Supreme Infrastructure India Limited shall continue.

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(7) The ad-interim order dated 27th November 2015 in regard to the mortgaged immovable property described in Exhibit “A” to Suit No. 79 of 2016 shall continue.

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(8) Parties will be at liberty to apply to this court for modification of order dated 27th November 2015 with respect to the mortgaged immovable property, as above.

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2. It is clarified that clause (7) of the order dated 27th April 2017 will continue to operate.

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(G. S. PATEL, J)

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Page 5 of 5

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3rd August 2017

Icici Bank Ltd. v. Bhawani Shankar Sharma and 4 Others

Case brief

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What did the court decide?

Icici Bank Ltd. v. Bhawani Shankar Sharma and 4 Others

Case brief

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