PUSHPANJALI TIP UP PVT.LTD. Vs. RENUDEVI CHOUDHARY

JUDGEMENT

(1.) The suit is in respect of shares purportedly pledged by the Plaintiff with Defendant Nos.1 and 2 under loan agreements separately entered into by the Plaintiff with Defendant No.1 and with Defendant No.2. It is the case of the Plaintiff that in spite of recovery of the entire outstanding loan with interest, Defendant Nos.1 and 2 have fraudulently sold or transferred shares held as security in breach of the loan agreements as also in breach of trust.

(2.) By the present Notice of Motion, the Plaintiff has sought an interim injunction restraining Defendant Nos.1, 2 and 3 (who is the depository participant with whom Defendant Nos.1 and 2 have accounts) from transferring any of the balance shares lying in the depository accounts of Defendant Nos.1 and 2. An interim injunction is also sought against Defendant Nos.4 and 5, who are the depositories in respect of the said shares, from transferring any of the balance shares lying in the DP accounts of Defendant Nos.1 and 2.

(3.) It appears that since the passing of an ad-interim order on the Notice of Motion, certain further shares have been transferred by Defendant No.3 on behalf of Defendant Nos.1 and 2, whilst some other shares lying in the DP Accounts of Defendant Nos.1 and 2 have been confiscated by Defendant No.3. Having regard to these transactions executed since the filing of the suit, the Plaintiff has amended the plaint as also the present Notice of Motion seeking in addition to the original prayers an interim restraint on Defendant No.3 from making pay-ins of shares sold by Defendant No.3 through the Stock Exchanges and clearing corporations on behalf of Defendant Nos.1 and 2 and directions to Defendant Nos.1 to 3 to deposit in this Court the sums received from sale of shares in excess of the liability owed by the Plaintiff to Defendant Nos.1 and 2.