Interim Injunction Upheld: Shareholders Barred from Transferring Shares During Arbitration Under Section 37(2) of A&C Act

The HC upheld an interim injunction restraining appellants from alienating their shareholding in a company pending arbitration. The court emphasized its limited role in appeals under Section 37(2) of the A&C Act, particularly for discretionary interlocutory orders, following the principle of least intervention. While appellants argued the Share Purchase Agreement was a contingent contract incapable of enforcement, the court found this argument meritless as appellants themselves alleged breach by respondent to terminate the agreement. The AT's injunction was justified as respondent demonstrated readiness to perform the agreement, and the order was necessary to preserve the subject matter (shares) pending arbitration. Appeal dismissed as the AT's discretion was exercised properly. .....

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