In Brief
Prudential Sugar Corporation Ltd. sought to transfer its sugar business to M/s. Natems Sugar Ltd. after obtaining shareholder approval via postal ballot. The respondents, claiming monetary interests totalling around Rs. 25 crores invested with Prudential, obtained a High Court order granting status quo injunction that halted the transfer. The Supreme Court set aside the injunction, holding that since the respondents' interest was merely monetary (not proprietary) and substantial reliance had already occurred, preserving their monetary claim through court deposit was more appropriate than blocking the shareholder-approved business transfer. The Court directed deposit of Rs. 25 crores in court and allowed the transfer to proceed.
The lawyer headnote and full judgment text are available to registered users.