2022 (4) TMI 708

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..... Earlier, by order dated 27.08.2019, this Court had given the option to applicant/Respondent No.5 to get mutual funds converted/encashed and the amount was to be deposited in a fixed deposit account of a nationalized bank. The said order was modified by this Court by a detailed order dated 16.03.2021 passed in I.A. No.100812/2020 in C.A. Nos.53955398 of 2019, the operative portion of which is extracted below: " 10. Therefore, we modify the Interim Order dated 27.08.2019 to the extent that the Mutual Fund units of Respondent No.5Applicant, kept with the Respondent No.1ISSL, be released in favour of the Respondent No.5Applicant by way of transfer of the said Mutual Fund units and crediting the same in the demat account of the Respon....

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....ant/Dalmia to the extent of Rs. 344.07 crores shall stand discharged on the applicant/Dalmia fulfilling the above conditions to the satisfaction of the Trial Court. The applicant/Dalmia shall also file an affidavit before this Court to the extent that the asset, which is being furnished as security, is an unencumbered property." 5. The present application, I.A. No.6482 of 2022, has been filed by the applicant/Respondent No.5 for a further modification of the order dated 21.09.2021, the prayers of which read as under: " a. Allow the present Application seeking modification of order dated 21.09.2021 passed by this Hon'ble Court in IA No.84110 of 2021; and/or b. Modify the order dated 21.09.2021 passed by this Hon'ble Cour....

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....ng of illiquid contracts was a preplanned synchronized activity wherein the exchange platform was used to camouflage a financial transaction. As such, the SFIO has also recorded a clear finding that the ISSL has fraudulently allowed movement of collaterals. It has been submitted that although the matter is still under investigation but prima facie view of EOW and SFIO are both clearly against the ISSL/Respondent No.1 and Allied Financial Services Pvt. Ltd./Respondent No.4. It is contended that the applicant/Respondent No.5 is incurring huge expenses/costs by furnishing bank guarantee and the alternative provided by order dated 21.09.2021 to furnish bank guarantee for a sum of Rs. 100 Crores and further to furnish security to the extent of R....

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...., ought not to be ignored while considering this matter. In its earlier orders, this Court has clearly found that the securities need to be released in favour of the applicant/Respondent No.5. The only question is with regard to the mode and manner of the securities to be furnished by the applicant/Respondent No.5. It is not disputed that the petitioner has, in terms of the order dated 16.03.2021, complied with the condition of furnishing bank guarantee of Rs. 344.07 Crores. 11. In paragraph 20 of this application filed by the applicant/Respondent No.5, it is stated that the applicant is a public limited company, having sound financials with a strong balancesheet and other financial statements (assets of INR 18,556 Crores and turnover of....