Partly allowed

Gati Infrastructure Private Limited & Ors. v. Idfc Bank Limited & Anr.

Delhi HC4 Jan 2017FAO(OS) (COMM)/3/2017

Case brief

AI extract

What is this about?

The High Court of Delhi dismissed the appeal and application seeking interim relief to restrain the sale of pledged shares, as the shares were already sold to third parties. The Court directed the bank to disclose the sale proceeds within three days.

What did the court decide?

Appeal dismissed; Respondent directed to furnish statement of sale proceeds within 3 days.

Gati Infrastructure Private Limited & Ors. Vs… — Contract and Commercial Disputes | Delhi HC (2017)

¶1

$~10

¶2

IN THE HIGH COURT OF DELHI AT NEW DELHI

¶3

- FAO(OS)(COMM) 3/2017

¶4

GATI INFRASTRUCTURE PRIVATE LIMITED & ORS

¶5

	...	.. Appellants
Represented by:	Mr.Gopal Jain,	Sr. Adv.
	instructed by	Mr.Rahul
	Malhotra and Mr.	Varun Garg,
	Advs. with Mr.Mo	hit Raj, AR
	of the appellant

¶6

versus

¶7

IDFC BANK LIMITED & ANR

¶8

..... Respondents Represented by: Mr.Sandeep Sethi, Sr. Adv. instructed by Mr.Sandeep Mahapatra, Mr.Dhruv Malik and Mr.Ashish Mukhi, Advs.

¶9

CORAM: HON'BLE MR. JUSTICE PRADEEP NANDRAJOG HON'BLE MR. JUSTICE YOGESH KHANNA

¶10

O R D E R % 04.01.2017

¶11

CM No.355/2017

¶12

Allowed subject to just exceptions.

CM No.354/2017

Allowed.

FAO(OS)(COMM) 3/2017

At the outset learned senior counsel who appears for respondent No.1, FAO(OS)(COMM) 3/2017 Page 1 of 3

¶17

on instructions informs that 15.8 lakh shares which were pledged with respondent No.1 have already been sold.

¶18

As per the impugned order dated January 02, 2017 learned Single Judge has refused to grant interim relief prayed for by the appellant to the effect that pending decision in the suit pledged shares be directed not to be sold by the respondent No.1.

¶19

Since the pledged shares already having been sold the appeal is rendered infructuous.

¶20

That apart, we find that in the plaint the appellant admits default in compliance with the loan agreement. The appellant predicates its case on entitlement for restructuring as per a scheme framed by the Reserve Bank of India.

¶21

The learned Single Judge has opined that no right would flow in favour of the appointment inasmuch as the scheme itself clearly records that the same is an optional framework for resolution of stressed accounts. Meaning thereby, there is no compulsion on lenders to give benefit to a defaulting party under the scheme framed by the Reserve Bank of India.

¶22

On this aspect of the matter we refrain from making any comment for the reason a writ petition filed by the appellant seeking mandamus against respondent No.1 to grant relief to it under the scheme framed by the Reserve Bank of India has been dismissed by reserving the right of the appellant to amend the plaint.

¶23

At base would be the fact that the shares which were pledged have already sold. In view of the default in compliance with the terms of the loan we are not inclined to direct status-quo-ante to be restored, more so for the

¶24

FAO(OS)(COMM) 3/2017 Page 2 of 3

¶25

reason third party interest have come into being.

¶26

Dismissing the appeal declining relief prayed for we direct respondent No.1 to furnish a statement to the appellant within three days disclosing the amount realised by sale of the shares. This direction is being issued so that the appellant knows how much of its liability is reduced.

¶27

No costs.

¶28

CM No.353/2017

¶29

In view of the fact that the appeal has been dismissed, the instant application seeking interim relief is dismissed as infructuous.

¶30

PRADEEP NANDRAJOG, J

¶31

YOGESH KHANNA, J

¶32

JANUARY 04, 2017 VLD

¶33

Page 3 of 3

¶34

FAO(OS)(COMM) 3/2017

Gati Infrastructure Private Limited & Ors. v. Idfc Bank Limited & Anr.

Case brief

What is this about?

What did the court decide?

Gati Infrastructure Private Limited & Ors. v. Idfc Bank Limited & Anr.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

Case details

Similar cases

Dheeraj Gupta Vs Pooja Gupta

Jayantt Prasad Vs Ruchira Prasad

Govt. of N.C.T. of Delhi & Ors. Vs Ashok Kumar

M/S Frances Modern Public School & Allen Computer Academy & Anr. Vs Ram Mehar Sharma & Ors.

Alaka Kapoor & Ors. Vs M/S Prime Time India Pvt. Ltd. & Ors.

Sonu Sirohi Vs Pushpinder Singh Sirohi