In Brief
Prudential Sugar Corporation Ltd. sought to transfer its sugar business to M/s. Natems Sugar Ltd. following approval through postal ballot under the Companies Act. The respondents—who claimed invested interests in the company—obtained an interim injunction freezing the transfer with a status quo order. The Supreme Court held that such orders were inappropriate where the respondents' interests were primarily monetary and substantial performance (payments made, business handed over, further investments by the acquirer) had already occurred. The Court allowed the transfer to proceed, protecting the respondents' monetary claims by directing Prudential to deposit Rs. 25 crores in court pending resolution of the suit and arbitration proceedings.
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