Delhi High Court - Orders
Steel Exchange India Limited & Anr vs India Coke And Power Private Limited on 10 April, 2024
Author: Jasmeet Singh
Bench: Jasmeet Singh
$~30
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ OMP(I) (COMM.) 111/2024
STEEL EXCHANGE INDIA LIMITED & ANR. ..... Petitioners
Through: Mr. Nithin Chowdary Pavuluri and
Mr. Shubham Saurabh, Advs.
versus
INDIA COKE AND POWER PRIVATE LIMITED..... Respondents
Through:
CORAM:
HON'BLE MR. JUSTICE JASMEET SINGH
ORDER
% 10.04.2024 I.A. 8369/2024
1. Exemption is granted subject to all just exceptions.
2. The petitioner shall file legible and clearer copies of exempted documents, compliant with practice rules before the next date of hearing.
3. The application is disposed of.
OMP(I) (COMM.) 111/2024
4. This is a petition filed under Section 9 of the Arbitration and Conciliation Act, 1996 seeking to restitute the pledged shares which have been invoked and transferred by the respondent in their own name.
5. The brief facts are that in Feb 2022, the petitioner No. 1 entered into several contracts with the respondent. The petitioner No.1 used to procure and purchase certain quantity of coal and metal scraps from the respondents on the terms and condition envisaged in the contracts.
This is a digitally signed order.
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6. The petitioner No. 1, petitioner No. 2 and respondent entered into Share Pledge Agreement on 31.03.2023 wherein petitioner No. 1 pledged 3 crores shares as held by petitioner No. 2 in petitioner No. 1 in order to secure the amounts due and payable to the respondent. On 11.05.2023, the petitioner No.1 pledged another 1 crore share to the respondent.
7. On 05.05.2023, the respondent wrote a letter stating that there is an amount of Rs. 30,76,24,081.83/- due and payable to the respondent.
8. On 26.03.2024, the respondent wrote an e-mail to the petitioner which reads as under:-
"From: Aurindam Dey <[email protected]> Sent: Tuesday, March 26, 2024 10:40 PM To: Mohit <[email protected]> Subject: Share Pledge Dear Mohit We will release the 4 Crore promoters quota shares which are pledged with us on receipt of the balance amount ( approx 37 Crs) against the loan given earlier. This offer is for payments to be made by 29th March, 2024 Regards Aurindam Dey IMR Resources Phone +91 9136977185 WA +91 8584836921"
9. On 30.03.2024, the petitioner wrote a return e-mail as under:-
From: Mohit Sent: Saturday, March 30, 2024 4:01 PM To: Aurindam Dey <[email protected]> Subject: Re: Share Pledges release against payment This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 11/04/2024 at 04:48:06 Dear Aurindam ji, In response to your mail below.
We have paid the amount of Rs.36.58 Crores on 29th March against the release of 4 Crore Promoter quota shares as agreed. Kindly request you to release the shares. Thanking you for the continuous support in our long term association.
Regards, Mohit Sandi Steel Exchange India Limited"
10. A perusal of the two e-mails clearly shows that as late as 26.03.2024, the amount due and payable to respondent was about 37 crores and the petitioner has already paid an amount of Rs. 36.58 crores approx. to the respondent. The respondent has now invoked the Share Pledge Agreement and transferred the 4 crores in its own name, to be sold further.
11. It is stated by Mr. Pavuluri, learned counsel for the petitioner that the invocation of the Share Pledge Agreement is unwarranted and the act of transferring the shares are contrary to law and an attempt to usurp the shares of the petitioners. The notice dated 31.03.2023 and 11.05.2023 for invocation of pledge agreements showing an amount of Rs. 184,30,72,253.00/- as due and payable is an afterthought and contrary to the email dated 26.03.2023 of the respondent. He further states that the value of the said 4 crore shares is about Rs. 60 crores as of today.
12. Issue notice to the respondent on the petitioner taking requisite steps within one week from today.
13. I am of the view that the 4 crore shares will be subject matter of This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 11/04/2024 at 04:48:07 the arbitration proceedings as and when initiated by the petitioner and needs to be protected for the time being.
14. I am also of the view that the petitioner will suffer irreparable loss and injury if the order as prayed for is not granted and that the petitioner has a prima facie case and balance of convenience lies in the favor of the petitioner.
15. For the said reasons, the respondent, their men, agents and/or servants are hereby restrained from taking any further action in disposing of the 4 crore pledged shares of the petitioners and/or creating third party rights in those shares.
16. List on 09.08.2024.
17. Dasti under the signature of Court Master.
JASMEET SINGH, J APRIL 10, 2024/NG Click here to check corrigendum, if any This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 11/04/2024 at 04:48:07