The Delhi High Court issued notice to Asian Holdings Pvt. Ltd. and Yes Bank Ltd. to submit their objections/reply to the interim applications filed under Order XXXIX Rule 2A and 4 of Civil Procedure Code.

The Bench of Justice Chandra Dhari Singh heard the interim applications filed.

Senior Advocates Vikram Nankani and Mahesh Aggarwal appeared for the plaintiff and Advocate Arjun Rekhi appeared for the defendant.

In this case, an interim order directing the defendant no.1 to maintain status quo with respect to the subject shares of Asian Hotel (North) Ltd till the next date of hearing, was passed and the said restraint continued to remain in force.

Presently, two interim applications were filed in the suit-

One, under Order XXXIX Rule 2A CPC wherein the plaintiff had sought to initiate appropriate action against defendant no.1 for the wilful disobedience of the Interim Order and to restrain the respondent and its agents and officers from making any assignment of the entire debt.

Second, under order XXXIX Rule 4, wherein the defendant no. 1 had sought to vacate, discharge or set aside or vary the status quo order granted in favour of the plaintiff.

Counsel for the plaintiff contended that the assignment of the entire debt of Asian Hotels (North) Limited and transfer of the Subject Shares by the defendant was in grave contravention and was wilful disobedience of the interim order passed earlier. it was also contended that they should be restrained from taking any steps on the assignment.

Further, the Counsel for the defendant contended that the status quo order ought to be discharged as there was-

  • active and material suppression on the part of the Plaintiff when the captioned Suit and Application for Stay was filed;
  • was a significant and substantial change in circumstances subsequent to the restraint order passed; and,
  • had caused undue hardship on the Defendant No. 1, one of the largest private sector banks in the country, by restraining it from recovering its outstanding and overdue debt.

The Court took note of the contentions made by the counsel in both the applications and issued notice to the parties to file objections/reply to the applications within four weeks.

Accordingly, the Court listed the matter for further hearing on March 2, 2023.

Cause Title- Asian Holdings Pvt. Ltd. v. Yes Bank Ltd.

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Delhi High CourtJustice Chandra Dhari Singh

Sanjoli N Srivastava