In Brief
In this case involving enforcement of an arbitral award against Fortis Healthcare entities, the Supreme Court examined whether interim status quo orders protecting FHHPL's shareholding in FHL applied to pledged shares, and whether the dramatic decline in shareholding (from 32+ crore shares to 11+ lakh shares) from 2016–2018 constituted contempt. The Court held that both encumbered and unencumbered shares were protected, and that despite a 2018 clarification allowing sales of pre-existing pledged shares, fresh encumbrances and subsequent sales were impermissible. The Court ordered banks and financial institutions to disclose loan documents, security arrangements, and details of share encumbrances to scrutinise whether they circumvented Court orders to circumvent enforcement.
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