Dispute over shares in liquidation company resolved with directions for rights issue.

The Court disposed of an application seeking various reliefs related to shares of M/s Reliance Industries Limited held by a company in liquidation. The dispute over ownership of shares prior to the appointment of the Official Liquidator was addressed, with directions given for a rights issue of equity shares. Karvy Stock Broking Limited was appointed to sell the rights entitlement of shares, as the Court emphasized the urgency due to the rights issue. The applicant's principal relief was not granted, and they were advised to pursue remedies in another pending case, leading to the disposal of the application in line with previous court directions.

---

---

Issues:
1. Application for various reliefs regarding shares of M/s Reliance Industries Limited held by a company in liquidation.
2. Dispute over ownership of shares prior to the appointment of the Official Liquidator.
3. Directions regarding rights issue of equity shares of Reliance Industries Ltd.
4. Appointment of Karvy Stock Broking Limited as Court Commissioner to sell the rights entitlement of shares.
5. Disposal of the application based on previous court directions.

Analysis:
1. The application filed by M/s Kuber Securities Limited sought various reliefs related to the shares of M/s Reliance Industries Limited held by a company in liquidation. The applicant requested the Official Liquidator to deliver the Offer of Rights shares immediately upon receipt, among other directions.

2. A dispute arose over the ownership of shares purchased by the applicant prior to the appointment of the Official Liquidator. Despite the dispute, the Court referred to a previous order dated 13.05.2020, which provided directions for similar relief applications by other parties. The Court emphasized the urgency due to a rights issue announced by Reliance Industries Ltd.

3. The Court addressed the rights issue of equity shares of Reliance Industries Ltd, entitling shareholders to subscribe to one share for every fifteen shares held. The Official Liquidator was unable to subscribe to the right shares of RIL, leading to opposition to renouncing the rights entitlement to the applicants. The Court directed the sale of the rights entitlement of RIL shares through Karvy Stock Broking Limited to maximize value.

4. Karvy Stock Broking Limited was appointed as a Court Commissioner to sell the rights entitlement of RIL shares held by the company in liquidation. Karvy was tasked with obtaining necessary forms for renouncing the rights entitlement and selling it to the highest bidder. The order extended to all shares of RIL registered in favor of the company in liquidation.

5. As per the Court's directions based on the previous order, the principal relief sought by the applicant could not be granted. The applicant was advised to pursue rights and remedies in another pending case before the Court. The application was disposed of in accordance with the Court's directions from the previous order dated 13.05.2020.

---