2020
1. The challenge in these petitions is to a Pledge Invocation
Notice ... Pledge Invocation Notice' for short) dated June 12, 2020
issued to the petitioners herein and additionally Corporate
Guarantee Notice ('Corporate Guarantee Notice
consideration the pledge invocation notices all dated
27th July, 2018 cannot be invoked and enforced.
The invocation of the share pledge agreement was for realization ... into equity have not been accounted for.
On such considerations the pledge invocation notices all dated 27th July, 2018
are set aside
IFIN") from acting on its Event of Default ("EoD") notice of
23rd July 2019. The second prayer is for a temporary injunction ... 10089-2020.DOC
restraining IFIN from acting in furtherance of a pledge invocation
notice of 20th August 2020.
3. The background to the Petition
invoke
only the shares pledged vide the unattested pledge agreement dated
27.12.2019. Nowhere in the Invocation of Pledge Notice dated
22.05.2020 did the respondent contemplate ... aware of this position on 22.05.2020 when it
sent its Invocation of Pledge Notice. This, in turn, would have found a
mention in the invocation
notice to pledgor
prior to effecting sale, Regulation 58 provides for notice
post invocation and on which invocation beneficial
ownership of pledged shares changes from ... distinction drawn in the Letters of Pledge aforequoted
between invocation of pledge, whereupon the beneficial
ownership in pledged shares, under Regulation 58 , was to
stand
contended that even otherwise, the invocation Notices dated
09.03.2020 and 11.03.2020, which resulted in sale of pledged shares are
ex-facie illegal and contrary ... there is no provision for prior notice. The only condition
imposed on invocation of pledge by the pledgee under Regulation 58 (8)
is the same
notices, failing which it threatened to initiate appropriate
action for enforcement of the pledged securities under the various
Pledge Agreements. By a separate notice dated ... respondent No.1/IDBI TSL from acting on the Pledge Invocation
Notices as also on the Corporate Guarantee Notice. The learned
Single Judge considered
mortgage of the Property. The invocation of pledge in respect of the
Pledged Shares and the invocation of security interests in the Property ... that
it had invoked the pledge of the Pledged Shares in terms of the Sale
Notice. The invocation of pledge cannot be made on multiple
event of default notice dated 23 rd July, 2019, pledge Invocation
Notice dated 20th August, 2020 and all ancillary/ incidental
correspondence issued in furtherance thereof
event of default notice dated 23 rd July, 2019, pledge Invocation
Notice dated 20th August, 2020 and all ancillary/ incidental
correspondence issued in furtherance thereof
