{"id":6612,"date":"2015-05-06T10:05:00","date_gmt":"2015-05-06T10:05:00","guid":{"rendered":"http:\/\/localhost\/sccblog\/?p=6612"},"modified":"2015-10-14T17:16:26","modified_gmt":"2015-10-14T11:46:26","slug":"lenders-can-claim-dues-only-after-passing-of-interim-award","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2015\/05\/06\/lenders-can-claim-dues-only-after-passing-of-interim-award\/","title":{"rendered":"Lenders can claim dues only after passing of Interim Award"},"content":{"rendered":"<p ><b><span  >Bombay High Court<\/span><\/b><span>: In a case of a company involved in a dispute and undergoing arbitration, a bench comprising of G.S. Patel, J. directed its lenders to wait for the passing of interim award before taking steps to get their money back. In the instant case, a company was incorporated to construct a bridge on a build, operate and transfer basis. A tax policy announced subsequently gave vehicles operating within a 5 km radius a substantial discount in toll rates, which affected the profitability and feasibility of the project. As the plaintiffs were unable to service their debts, the lender banks moved to sell off the pledged shares. The plaintiff company then approached the Court to restrain the lender banks from selling off the pledged shares before the passing of interim award in an arbitration between the company and State Government as they were expecting a favourable decision. <b><o:p><\/o:p><\/b><\/span><\/p>\n<p ><span  >The Court held the request of the plaintiffs to be \u2018reasonable\u2019 and \u2018moderate\u2019 and in interest of both the parties and thereby directed the consortium of lenders to wait for arbitrators to pass the interim award. The Court further clarified that if the Interim Arbitral Award was not in favour of the Plaintiffs, the Defendants would be at liberty to immediately take steps to enforce the pledged security of 20,00,000 shares of the company without further reference to the Court. The lenders could sell pledged shares as well as invoke the personal guarantee given by the company&#8217;s promoters and directors.<i> Kalyan Sangam Infratech Ltd vs. IDBI Bank Ltd,&nbsp;<\/i><\/span><span><a href=\"http:\/\/www.scconline.com\/LoginForNewsLink\/2015_SCC_OnLine_Bom_2055 \"><font size=\"3\">2015 SCC OnLine Bom 2055<\/font><\/a><\/span><i>&nbsp;10-04-2015<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bombay High Court: In a case of a company involved in a dispute and undergoing arbitration, a bench comprising of G.S. Patel, <\/p>\n","protected":false},"author":3,"featured_media":7321,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10],"tags":[3416],"class_list":["post-6612","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-highcourts","tag-pledged_shares"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Lenders can claim dues only after passing of Interim Award | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2015\/05\/06\/lenders-can-claim-dues-only-after-passing-of-interim-award\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Lenders can claim dues only after passing of Interim Award\" \/>\n<meta property=\"og:description\" content=\"Bombay High Court: In a case of a company involved in a dispute and undergoing arbitration, a bench comprising of G.S. 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(Future Group) amid market collapse due to COVID-19","author":"Bhumika Indulia","date":"April 1, 2020","format":false,"excerpt":"Bombay High Court:\u00a0K.K. Tated, J., granted ad interim relief to Rural Fairprice Wholesale Ltd. from selling the pledged equity shares as the share market has collapsed due to COVID-19 and would have resulted in huge loss to the plaintiffs. In the present matter, applicant's sought injunction against respondent's notice dated\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":269695,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/07\/07\/bombay-high-court-lenders-are-entitled-to-voting-rights-on-pledged-shares-as-a-matter-of-contract-appeal-dismissed\/","url_meta":{"origin":6612,"position":1},"title":"Bombay High Court | Yes Bank-Dish TV Case: Beneficial Owner of pledged shares, contractually entitled to all rights, including voting rights in Annual General Meeting","author":"Editor","date":"July 7, 2022","format":false,"excerpt":"Bombay High Court: The Division Bench of G.S.Patel and Madhav J Jamdar, JJ. dismissed an appeal ruling that lenders are entitled to voting rights on pledged shares as a matter of contract. The appeal was against the order of the Single Judge dated 17-06-2022. The main point of discussion before\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Bombay High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/02\/Bombay-HC.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/02\/Bombay-HC.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/02\/Bombay-HC.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/02\/Bombay-HC.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/02\/Bombay-HC.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":380078,"url":"https:\/\/www.scconline.com\/blog\/post\/2026\/04\/03\/narcl-section-34-bombay-high-court-arbitration-deposit-transmission\/","url_meta":{"origin":6612,"position":2},"title":"CAM Represents NARCL in Section 34 MMOPL\u2013MMRDA Dispute; Secures Directions to Transfer Deposit","author":"Editor","date":"April 3, 2026","format":false,"excerpt":"Cyril Amarchand Mangaldas represented National Asset Reconstruction Company Limited in Section 34 proceedings before the Bombay High Court securing transmission of deposited arbitral amounts to the lender.","rel":"","context":"In &quot;Law Firms News&quot;","block_context":{"text":"Law Firms News","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/law-firms-news\/"},"img":{"alt_text":"CAM Represents NARCL in Section 34 MMOPL\u2013MMRDA Dispute; Secures Directions to Transfer Deposit | SCC Times","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2026\/04\/blog-13-31.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2026\/04\/blog-13-31.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2026\/04\/blog-13-31.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2026\/04\/blog-13-31.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":254429,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/09\/18\/j-hc-clarifies-prerequisites-of-s-31-6-and-s-17-1iie-of-the-arbitration-and-conciliation-act-1996\/","url_meta":{"origin":6612,"position":3},"title":"J&#038;K and Ladakh HC | Interim Award v\/s Interim Order; HC clarifies prerequisites of S. 31 (6) and S. 17 (1)(ii)(e) of the Arbitration and Conciliation Act, 1996","author":"Editor","date":"September 18, 2021","format":false,"excerpt":"Jammu & Kashmir and Ladakh High Court: Sanjay Dhar, J., clarified the difference between Interim Award and Interim Order. The Bench stated, \u201cWhile passing an order under Section 17 (1)(ii)(e) of the Act of 1996, an arbitral Tribunal would be justified in considering the prima facie case, the balance of\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":282790,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/01\/31\/section-9-of-the-arbitration-and-conciliation-act-1996-does-not-permit-passing-of-an-order-in-the-nature-of-a-permanent-measure-delhi-high-court-denies-permanent-injunction-under-section-9-of-the-act\/","url_meta":{"origin":6612,"position":4},"title":"Section 9 of the Arbitration and Conciliation Act, 1996 does not permit passing of an order in the nature of a permanent measure; Delhi High Court denies permanent injunction under Section 9","author":"Editor","date":"January 31, 2023","format":false,"excerpt":"The Delhi High Court denied permanent injunction under Section 9 of the Arbitration and Conciliation Act, 1996 (Act) and held that Section 9 did not permit passing of an order in the nature of a permanent measure.","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Delhi High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/12\/MicrosoftTeams-image-418.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":310821,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/01\/05\/securities-appellate-tribunal-directs-restitution-of-shares-pledged-in-favour-icici-hdfc-bajaj-finance-indusind-bank-legal-news\/","url_meta":{"origin":6612,"position":5},"title":"Securities Appellate Tribunal directs restitution of shares pledged in favour of Axis Bank, ICICI Bank, Bajaj Finance, HDFC Bank and IndusInd Bank","author":"Arunima","date":"January 5, 2024","format":false,"excerpt":"The appropriate process was not done and like a highway robber NSDL through illegal directions from SEBI transferred the pledged shares which were fungible, to the clients of Karvy which action was without any authority of law.","rel":"","context":"In &quot;Tribunals\/Commissions\/Regulatory Bodies&quot;","block_context":{"text":"Tribunals\/Commissions\/Regulatory Bodies","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/tribunals_commissions_regulatorybodies\/"},"img":{"alt_text":"securities appellate tribunal, mumbai","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/07\/securities-appellate-tribunal-mumbai.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/07\/securities-appellate-tribunal-mumbai.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/07\/securities-appellate-tribunal-mumbai.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/07\/securities-appellate-tribunal-mumbai.webp?resize=700%2C400&ssl=1 2x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/6612","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=6612"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/6612\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/7321"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=6612"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=6612"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=6612"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}