In a recent judgment by the Delhi High Court, a lending and bill discounting services company secured a favorable ruling in a contempt petition case. The court addressed concerns related to third party interests in shares held by the company. This case has significant implications for the bill discounting industry and highlights the importance of safeguarding the company’s interests. Read on to learn more about the details of this crucial ruling.
Facts
- The appellant, a lending and bill discounting services company, filed contempt petitions in a 2013 case against the respondents.
- The Single Judge found respondents guilty of contempt for creating third party interest in shares held by the company.
- A suit was filed by the appellant in 2022 seeking nullification of share allotments made by respondents.
- An interim order in 2023 directed defendants to maintain status quo on share transfers.
- Respondents 7 and 8 were granted permission to transfer shares with conditions to deposit sale consideration.
- The Single Judge observed that subscribing to rights shares by respondents 7 and 8 was not illegal.
- Appellant appealed against the judgment, citing contradictions with the earlier ruling and seeking to prevent undervalued share transfers.
- A direction was given for respondents 7 and 8 to disclose details of share sale and price agreed upon before transaction.
- The court emphasized safeguarding the appellant’s interest in potential share sales below market value.
- The dispossession of the appeal and related application was specified based on the directions provided.
Case Title: MORGAN SECURITIES & CREDITS PVT. LTD. Vs. BPL LIMITED & ORS. (2024:DHC:3930-DB)
Case Number: FAO(OS) (COMM)-174/2023
