9911796707
TMI Blog2002 (2) TMI 1241X X X X Extracts X X X X X X X X Extracts X X X X ..... gainst the stock market reflected share value of about Rs. 50 per share). The relief claimed in the application is that either the amount of Rs. 8.27 crores jointly deposited by them, in the ESCROW account, should be paid back to them or the shares should be transferred in their favour since they have paid the complete consideration amount in relation to the said shares. The text of the prayer made, may be quoted for convenience of reference : ( a )pass an order modifying or varying its order dated 2-7-2001 and permitting the transfer of shares of Modi Rubber Ltd. lodged by Modipon Ltd. pursuant to the Public Offer in favour of the acquirer subject to deposit of consideration in this Hon ble Court or on such terms and conditions as this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court, in the present case, to become infructuous. 4. It was the contention of the appellant that after the order dated 4-2-1998 of the Hon ble Supreme Court, there has been no such change of circumstances, as would warrant modification of the injunction granted by the learned Single Judge, whereby 50 per cent of the total shares were allowed to be put on sale by public offer. 5. We have presently taken up for consideration only the application (I.A. No. 1176 of 2001), primarily for the purposes of working out an interim arrangement which would balance the apparently conflicting interests of the various parties involved (including the banks/financial institutions), all in the specific context of this application filed by the purcha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esolution of the board of directors of Modipon Ltd. proposing the sale/transfer of shares of MRL, was the subject-matter of directions/orders by the SEBI, and thereafter by the Bombay High Court in CWP No. 153 of 2001. Vide judgment and order dated 2-7-2001 and 23-7-2001 of the Bombay High Court, permission has been granted for the public offer, and it is after that that the applicants have purchased these shares. 10. Ordinarily speaking the shares being held by Modipon Ltd. or by any other company, by way of intercorporate holding, in MRL or any other company, are assets of the company which would be sold by a valid decision of the board of directors of the company. The only possible impediment could be in relation to the effect on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to this extent, in MRL. 12. The only question which remains is regarding the title to the shares which are the subject-matter of the suit pending before the learned Single Judge. We do not wish to decide any of these issues which are pending before the learned Single Judge in the suit, or to render the same substantially or completely infructuous. We, therefore, propose to work out an interim arrangement which sufficiently and equitably safeguards the interest of all concerned, without adversely affecting the aspects involved in the other pending litigation, and we proceed to do so as under all the while keeping in view the position that the title to the shares is still to be decided in the suit or other proceedings, and that the share ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g parties were at loggerheads on most issues. While the appellants claim that they are entitled to have these shares without paying anything, the respondents claim that the appellants have to pay them Rs. 21 crores as amounts owned by the appellants on various grounds. While denying the liability to pay Rs. 21 crores, the appellants have not come out with any specific figure regarding the payment to be made by them. During the hearing, we put it to the appellants whether they were prepared to safeguard the possible loss due to fluctuation of share value, and also the eventuality of return of amount to the applicants who are admittedly paying much more than the share market value for these shares with good interest return, in case, their mon ..... X X X X Extracts X X X X X X X X Extracts X X X X
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