Interlocutory injunction modification in asset sale dispute: market valuation, banking channels, and independent oversight were required.

Interlocutory relief concerning sale of company assets was refined under injunction principles to balance the plaintiffs' control of the company with protection of the defendants' claimed interest. The court accepted a prima facie concern that sale at circle rate could still involve unaccounted cash payments and prejudice the defendants if they ultimately succeeded. It therefore declined a complete status quo restraint, but modified the consent arrangement so any sale must be at prevailing market value, consideration must pass only through banking channels, and a Local Commissioner-cum-Observer may be appointed to assess market value at the time of sale.

---

---

Issues: Whether the consent interim order governing sale of the company's landed assets required modification so as to protect the defendants' interest against alleged undervaluation and cash dealings, while preserving the plaintiffs' control over the company.

Analysis: The application was considered under the principles governing interlocutory injunctions and modification of interim arrangements. The earlier orders had consistently recognised the plaintiffs' control over the company, and no later declaration had altered that position. At the same time, the material placed on record showed a prima facie apprehension that sale of assets at merely the circle rate could still permit unaccounted cash payments and could prejudice the defendants if their claim ultimately succeeded. The Court therefore declined to impose complete status quo, but found it necessary to refine the earlier consent terms so that any sale would be at the prevailing market rate, the consideration would move only through banking channels, and a Local Commissioner-cum-Observer could be appointed to estimate market value at the time of sale.

Conclusion: The application succeeded only to the extent of modification of the prior consent order. The request for complete restraint was declined, but the sale mechanism was broadened to include market-rate valuation and independent oversight.

---