March 27, 2019 4:01:09 am
A SPECIAL court in Mumbai late on Tuesday refused to grant a stay on an order by the Debts Recovery Tribunal (DRT) pertaining to the sale of shares of Vijay Mallya-linked United Breweries (Holdings) Limited. The court said that it did not have the power to grant a stay on an order passed by any other authority.
UBHL had last week approached the court against an order of the DRT, according to which, on Wednesday, 74,04,392 shares of UBHL will be sold in the open market. The court, however, said that if the shares are part of an attachment order passed in 2016, they cannot be the subject matter of a transfer by sale.
“If the subject shares are part of attachment of the order dated November 10, 2016, in that eventuality, there is clog over those shares and legally cannot be subject matter of transfer by virtue of sale,” the special court said. It said that the order of the recovery officer of the DRT, can be challenged before the DRT and is not maintainable before the special court.
Earlier in the day, senior counsel, Amit Desai, representing UBHL had said that there was no urgency to sell the shares and that they should not be sold in a piecemeal manner so that it can be beneficial for all creditors. It was submitted that the 3 per cent of the shares-amounting to approximately Rs 1500 crore- were to be sold in the market on March 27.
Desai argued that there was no need for a ‘distress sale’. He sought a stay on the DRT order. The court, however, said that provisions of the Criminal Procedure Code or the Prevention of Money-Laundering Act, that it is designated under, it cannot stay the order of any other authority.
Desai said that a decision on whether to appeal against the order was being taken at the time of going to press.
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