Khushi
The Karnataka High Court has restrained NRI entrepreneur and promoter of UAE-based NMC Healthcare, Dr BR Shetty and his wife or their agents from alienating, transferring, dissipating and mortgaging their movable assets such as shares, mutual funds, and monies deposited in their bank accounts.
A Division Bench comprising Chief Justice Abhay Shreeniwas Oka and Justice Sachin Shankar Magadum passed the order.
The Bench allowed an appeal by the Bank of Baroda, which had questioned the August 28, 2020 order of the Commercial Court granting temporary injunctions in respect of only immovable properties of Mr. Shetty and his wife Chandrakumari R. Shetty.
The order reads, “There will be a temporary injunction against the defendants in terms of prayers made in I.A. Nos. I and II of Commercial Original Suit No. 1 of 2020. However, as regards the other assets (other than immoveable property described in item Nos 1 to 13 and 16 of plaint schedule) held by the first defendant, it will be always open for the first defendant to apply to the plaintiff Bank for grant of permission to transfer the same.”
The Bench also dismissed the appeals filed by Mr. Shetty and Ms. Shetty which challenges the Commercial Court order of granting a temporary injunction in respect of immovable properties.
Mr. Shetty and the Dubai-based companies/entities controlled by him had taken loan to the tune of ₹2,077 crore from the Bank of Baroda.
The bank had filed suit before the Commercial Court seeking direction to Mr. Shetty and his wife to comply with their obligations, made in the Letter of Negative Lien, to provide details of all movable and immovable assets, create mortgage in favour of the bank and not to alienate, etc. the declared assets.