HINDUSTAN ENGINEERING AND INDUSTRIES LIMITED Vs. SPICEJET LIMITED

JUDGEMENT

(1.) By this application, applicant/respondent No. 2 to 4 are seeking permission to sell 12,45,300 shares of respondent No.1 at the prevailing market rate, which are in the custody of respondent No. 2 in dematerialized form.

(2.) Learned senior counsel for applicants/ respondents No.2 to 4 submitted that vide order dtd. 5/3/2018, this Court had permitted sale of 52,92,500 shares, inclusive of 12,45,300 shares, at the rate of Rs.118.25 per share and to deposit the sale proceeds in the "no lien account", which was to be further converted into Fixed Deposit receipts and deposited with the Registrar General of this Court. However, since 12,45,300 shares were dematerialized by respondent No.1 belatedly only on 24/1/2020 and thereafter, in the light of Covid-19 pandemic, the share price of respondent No.1 drastically fell, so the sale of these shares in terms of undertaking furnished before the Court on 5/3/2018 at the reduced price is onerous, and, therefore, sale could not be affected.

(3.) It was further submitted by learned senior counsel for the applicants that respondent No.1-company is under liquidation and appeal preferred by respondent No.1 is pending adjudication before the Hon'ble Supreme Court. Learned senior counsel strenuously submitted that the share price of respondent No.1 is volatile and is expected to fell even more drastically and if winding up of respondent No.1 is permitted by the Hon'ble Supreme Court, the asset value of the shares would be negligible. Thus, permission of the Court is sought to sell 12,45,300 shares at the prevailing market value; sale proceeds thereof shall be deposited in a "no lien account" and converted into an FDR and deposited with the Court. Lastly, it was submitted that if the applicants are not permitted to sell these shares at the prevailing market rate, then respondent No.2 shall suffer a huge loss.