K K MODI Vs. M K MODI

JUDGEMENT

(1.) This application hast been preferred by applicants B.K.Modi, alongwith V.K .Modi , who have agreed to purchase'' certain shares of M/s Modi Rubber Limited (-hereinafter referred to as MRL) held by M/s Modipon pursuant to a process of public offer, @Rs.90/- per share(as against the stock market reflected share value of about Rs.50.00 per share). The relief claimed in the application is that either the amount of Rs.8.27 crores jointly deposited by them, in the ESCROW account, should be paid back to them or the shares should be transferred in their favour since they have paid the complete consideration amount in relation to the said shares. The text of the prayer made, may be quoted for convenience of reference:

(2.) The application has been objected to by IFCI by filing their reply/objections in terms of the order dated 26/11/2001 even whilst IFCI's .application under Order 1, Rule 10, Code of Civil Procedure, was still pending consideration (and same has been disposed of by us only today vide orders separately parsed in that behalf).

(3.) The appellants in FAO (OS) No.462 of 2001 have orally contended that while they have no objection to the money being returned to the applicants but according to them, the transfer of shares is not permissible by virtue of the order dated 4/02/1998 passed by the Supreme Court whereby Suit No.1394 of 1996, out of which the SLP arose, has been remanded for consideration by the learned Single Judge of this court, alongwith certain directions as detailed in the said order. The submission of the appellants/non-applicants is that the sale/transfer of these shares in favour of the applicants, would render a substantial portion of the relief claimed in the Suit No. 1394796, and also the main appeal in this Court, in the present case , to become infructuous.