Bombay HC Restrains Sale of Pledged Shares Due to COVID-19 Pandemic

In Rural Fairprice Wholesale Limited v. IDBI Trusteeship Services Limited[1], the defaulting party sought an injunction on the ground that if the pledged shares were sold during the pandemic, irreparable loss would be caused to all stakeholders as such shares would be sold at a very low price. An ad interim injunction was granted by the Bombay High Court restraining IDBI Trusteeship Services Limited from selling the pledged shares, until a future date. A special leave petition challenging this Order was dismissed by the Supreme Court.

[1] Interim Application No.1 of 2020 in Commercial Suit (L) 307 Of 2020

Published In:Inter Alia - Quarterly Edition - June 2020 [ English
Date: June 30, 2020