2022 (5) TMI 1510 - HC - SEBI

Interim Application filed by SEBI for impleadment in Commercial Suit and for seeking stay / recall of the order passed in Interim Application - HELD THAT - This Court while granting ad-interim relief by the above orders has directed Defendant No. 2 to call for a meeting of the debenture holders of Defendant No. 1 within two weeks of the order for the purpose of consideration and approval of the beneficial owners or debenture holders and the settlement offer / compromise / arrangement / resolution plan approved by ICA lenders on 19.06.2021 and further directing that the calling / conducting and voting at such meeting would be governed by the terms of the respective debenture trust deeds. After hearing the parties and considering various orders placed before this Court, it is directed at this stage that the results of the voting of the meeting to be conducted on 13.05.2022 by placed in a sealed envelope before this Court.

Summary

Issues:
1. Application for impleadment in a commercial suit and seeking stay/recall of orders.
2. Direction for a meeting of debenture holders for approval of settlement offer.
3. Placing voting results in a sealed envelope before the Court.
4. Issue regarding implementation of SEBI.
5. Keeping all contentions of parties open.

Analysis:
The High Court of Bombay heard an Interim Application filed by SEBI seeking impleadment in a Commercial Suit and requesting a stay or recall of previous orders. The Court had directed Defendant No. 2 to convene a meeting of debenture holders of Defendant No. 1 within two weeks for considering and approving the settlement offer. The meeting's voting results, scheduled for 13.05.2022, were to be submitted in a sealed envelope to the Court. The Court kept the issue concerning SEBI's implementation open for further consideration. Additionally, all contentions raised by the parties were explicitly left open for future arguments. The matter was adjourned to 6th June 2022 with liberty to apply for any necessary actions.