Iifl Securities Ltd vs Harshad Hirji Thakkar on 27 February, 2019

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Bombay High Court

Iifl Securities Ltd vs Harshad Hirji Thakkar on 27 February, 2019

Bench: G.S.Kulkarni

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                   IN THE HIGH COURT OF JUDICATURE AT BOMBAY

                        ORDINARY ORIGINAL CIVIL JURISDICTION
                            IN ITS COMMERCIAL DIVISION

               COMMERCIAL ARBITRAITON PETITION NO.334 OF 2019

 IIFL Securities Ltd.                                      ...Petitioner
        Versus
 Harshad Hirji Thakkar                                     ...Respondent
                                        ---
 Mr.Simil Purohit with Ms.Jyoti Sinha I/b. Khaitan & Co., for the Petitioner.

                                        ---
                                     CORAM:        G.S.KULKARNI, J.

                                     DATED:        27th February, 2019
                                         ---
 P.C.:

1. Heard Mr.Purohit, learned Counsel for the petitioner. Mr.Purohit refers to the affidavit of service of Mr.Nilesh Chavan dated 27 February 2019 to contend that the respondent is served and a packet containing letter dated 25 February 2019 alongwith annexures addressed to the respondent was delivered on 26 February 2019 around 5.26 p.m. It is stated that another service sought to be effected by speed post on 26 February 2019 which is yet to be delivered. The petitioner in paragraph (ix) at page 8 of the petition has also contended that the respondent is reported absconding since 2 October 2018 and it has been reported that the respondent owes significant amounts to numerous parties other than the petitioner.

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2. The case of the petitioner for today's ad-interim application in this proceeding under Section 9 of the Arbitration and Conciliation Act,1996 is to secure amounts owed by the respondent under Margin Trading Credit Facility (for short 'the facility') extended by the petitioner to the respondent. The facility was availed by the respondent for the purpose of making investments. The respondent had provided 72,40,774 equity shares of Ashapura Intimates Fashion Ltd. (AIFL) in favour of the petitioner to secure the said facility. It is contended that in view of the fall in the value of the shares of AIFL, the petitioner had called upon the respondent to repay the sums outstanding under the said facility alongwith applicable interest. However, the respondent has failed to make payment of outstanding sums though called upon to make payment on multiple occasions. It is stated that as on 1 January 2019 the respondent owed a sum of Rs.29,16,65,262.52 to the petitioner.

3. I have heard Mr.Purohit, learned Counsel for the petitioner and I have perused the documents as placed on record. In my opinion, prima facie case is made out at this stage of proceedings to grant ad-interim relief in terms of prayer clause (B), (C) and (D) of the petition, however the ad-interim relief in terms of prayer clause (D) shall be subject to existing prior rights of any other party. Ordered accordingly.

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4. Issue notice to the respondent returnable on 27 March 2019. IN case the notice cannot be served as it is stated that the respondent is absconding then the petitioner is at liberty to issue a notice by publication as per rules.

5. Parties to act on the authenticated copy of this order.

(G.S.Kulkarni,J.) ::: Uploaded on - 04/03/2019 ::: Downloaded on - 22/03/2019 02:20:45 :::

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