https://www.taxtmi.com/caselaws?id=767528 In a Section 9 arbitration petition, interim protection may extend to property directly linked to the disputed investment, including assets released because of that investment, where the promised share allotment was never made. The Court found a prima facie misuse of share application money, since the funds were used to discharge the company's liability and the corresponding allotment obligation remained unperformed, engaging Section 42(6) of the Companies Act, 2013 on the pleaded facts. It held that the petitioner showed a strong prima facie case, risk of frustration of the arbitral process, and irreparable prejudice, so deposit of the investment equivalent with statutory interest and restraint against third-party interests were justified pending arbitration. en-us Tue, 18 Mar 2025 00:00:00 +0530 Thu, 20 Mar 2025 08:21:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=767528 In a Section 9 arbitration petition, interim protection may extend to property directly linked to the disputed investment, including assets released because of that investment, where the promised share allotment was never made. The Court found a prima facie misuse of share application money, since the funds were used to discharge the company's liability and the corresponding allotment obligation remained unperformed, engaging Section 42(6) of the Companies Act, 2013 on the pleaded facts. It held that the petitioner showed a strong prima facie case, risk of frustration of the arbitral process, and irreparable prejudice, so deposit of the investment equivalent with statutory interest and restraint against third-party interests were justified pending arbitration. Case-Laws Companies Law Tue, 18 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=767528