Bombay High Court
Iifl Securities Limited vs Harshben Hirji Thakkar on 27 February, 2019
Author: G.S.Kulkarni
Bench: G.S.Kulkarni
pvr 1 904carbp333-19.doc
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
IN ITS COMMERCIAL DIVISION
COMMERCIAL ARBITRAITON PETITION NO.333 OF 2019
IIFL Securities Ltd. ...Petitioner
Versus
Harshben Hirji Thakkar ...Respondent
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Mr.Simil Purohit with Ms.Jyoti Sinha I/b. Khaitan & Co., for the Petitioner.
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CORAM: G.S.KULKARNI, J.
DATED: 27th February, 2019
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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.
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 ::: Uploaded on - 04/03/2019 ::: Downloaded on - 22/03/2019 02:20:50 ::: pvr 2 904carbp333-19.doc respondent. The facility was availed by the respondent for the purpose of making investments. The respondent had provided 5,00,000 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.3,11,67,594.22.
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) and (C) of the petition which read thus:-
"B. Pending the hearing and final disposal of the Arbitration proceedings till the execution of the award rendered pursuant to the said arbitration proceedings, this Hon'ble Court may be pleased to pass an order restraining the Respondent from selling, transferring, dealing with, disposing of or parting with possession of, assigning, and/or creating any kind of third-party right, encumbrance or interest in any manner whatsoever in respect of the 5,00,000 equity shares of AIFL provided as collateral by the Respondent to the Petitioner;
C. Pending the hearing and final disposal of the Arbitration proceedings, this Hon'ble Court be pleased to pass an order directing ::: Uploaded on - 04/03/2019 ::: Downloaded on - 22/03/2019 02:20:50 ::: pvr 3 904carbp333-19.doc the Respondent to disclose on oath and/or on affidavit, the value of the unencumbered movable and immovable assets/properties owned by the Respondent as on date, and the latest balances of all the bank accounts of the Respondent."
Ordered accordingly.
4. Issue notice to the respondent returnable on 27 March 2019.
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 02:20:50 :::