Citicorp International Finance Corporation v. The Official Liquidator

906.ca.448.2018 cp.488.2015.doc

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

ORDINARY ORIGINAL CIVIL JURISDICTION COMPANY APPLICATION NO. 448 OF 2018 IN COMPANY PETITION NO. 488 OF 2015 Citicorp International Finance Corporation .. Applicant In the matter between :

Pushpasen C. Jhaveri .. Petitioner Vs.

The Official Liquidator, High Court, Bombay (in respect of Elder Pharmaceuticals Ltd.) .. Respondent Mr.Nikhil Sakhardande a/w. Mr. Rohan Rajadhyaksha and Ms.Shrena Doongji I/b AZB and Partners for applicant.

Mr.Durgaprasad Halwai I/b Jayesh Desai and Associates for original petitioner.

Mr.Mahendhair Aithe, company prosecutor for official liquidator present. CORAM : K.R.SHRIRAM, J.

DATE : 30TH AUGUST 2018 P.C.

This application is filed for leave to transfer 17,30,000 equity shares held by applicant in the company (in liquidation) to another company. The reason why applicant is making this application is, as stated in the affidavit in support, because the laws of United States of America permit applicant to hold the said shares only for a period of 10 years. Applicant is a financial holding company and carries on business as a Merchant Banking Investor. According to applicant, the Merchant Banking Investment Regulations of Shraddha Talekar PS 1/2

906.ca.448.2018 cp.488.2015.doc the United States of America, under Section 225.172 prescribed the holding period for merchant banking investment as 10 years upon the expiry of which the concerned Financial Holding Company must mandatorily divest its investment/holding, by way of sale or otherwise. Applicant had purchased these shares under an Investment Agreement dated 16th May 2005 executed by and between applicant and the company. In the affidavit in support, the affiant has also explained the consequences of its failure to transfer. On 31st July 2018, applicant was directed to provide copies of share certificates and details of demat holding etc. Shri Sakhardande states that these details were provided. The official liquidator was directed to file an affidavit in reply within two weeks of receiving the details. Shri Sakhardande states that the details were provided on 1st August 2018. The two weeks period expired on or about 15th August 2018. No affidavit in reply opposing the application is filed. Shri Halwai appearing for petitioner has no objection.

In these circumstances, the application is allowed in terms of prayer clauses (a), (b) and (c) and accordingly disposed. (K.R. SHRIRAM, J.) Digitally signed by Shraddha Kamlesh Talekar Date:

2018.09.04 19:29:41 +0530 Shraddha Kamlesh Talekar Shraddha Talekar PS 2/2