Shetty, wife restrained from mortgaging assets

The Karnataka High Court has granted short-term injunction restraining NRI entrepreneur and promoter of UAE-based NMC Healthcare, B.R Shetty, and his wife from alienating, transferring, dissipating and mortgaging their movable assets similar to shares, mutual funds and deposits in banks.

A Division Bench comprising Chief Justice Abhay Shreeniwas Oka and Justice Sachin Shankar Magadum handed the order whereas permitting an enchantment by the Bank of Baroda, which had questioned the August 28, 2020 order of the Commercial Court granting short-term injunctions in respect of solely immovable properties of Mr. Shetty and his wife Chandrakumari R. Shetty.

Meanwhile, the Bench dismissed the appeals filed by Mr. Shetty and Ms. Shetty difficult the Commercial Court order of granting short-term injunction in respect of immovable properties.

The High Court mentioned the Commercial Court was not proper in denying short-term injunction in respect of movable assets merely as a result of the financial institution had not furnished particular particulars of assets similar to shares, mutual funds, financial institution deposits and many others.

The financial institution was not ready to offer these particulars as Mr. Shetty had didn’t furnish particulars of all movable and immovable assets as per the endeavor given to the financial institution within the type of Letter of Negative Lien submitted to the financial institution, the High Court mentioned, whereas declaring that Mr. Shetty declined to offer particulars regardless of a discover issued by the financial institution to him in May 2020.

The financial institution had filed swimsuit earlier than the Commercial Court searching for route to Mr. Shetty and his wife to adjust to their obligations, made within the Letter of Negative Lien, to offer particulars of all movable and immovable assets, create mortgage in favour of financial institution and to not alienate, and many others. the declared assets. Mr. Shetty and the Dubai-based corporations/entities managed by him had taken mortgage to the tune of ₹2,077 crore and as on May 5, 2020, legal responsibility of him and his corporations to the financial institution is round ₹1,912 crore, the financial institution had informed the court docket.