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        Indian Laws

        HC modified interim injunction order in loan recovery matter...

        Modified interim injunction allows normal business operations while restraining investment disposal in Rs. 26 crore loan recovery case

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                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.
                                HC modified interim injunction order in loan recovery matter involving Rs. 26 crores debt. While acknowledging petitioner's prima facie case based on respondent's books and admission letter, court found balance of convenience favored vacating bank account restraint requiring Rs. 40 crores minimum balance. Court noted NARCL's control over both parties provided adequate protection. Injunction modified to restrain disposal of disclosed investments and future investments while permitting normal business operations. SARFAESI Act security over scheduled assets deemed sufficient protection. Court emphasized parallel proceedings under SARFAESI Act and Arbitration Act can continue simultaneously. Petitioner retained liberty to seek interim relief before arbitrator. Application disposed with modified interim relief balancing creditor protection against debtor's operational requirements.
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