Mumbai, April 9: The Bombay High Court restrained ICICI Home Finance Ltd. from further selling shares of MEP Infrastructure Developers Ltd. offered as a collateral against a term loan by the road developer’s promoter group firm.
The relief, however, is subject to timely payments of dues by Ideal Toll and Infrastructure Pvt. Ltd. as per the timelines prescribed by the court, according to the order by Justice AK Menon, who heard the case via video-conferencing, Bloomberg reported.
While prohibiting ICICI Home Finance from declaring Ideal Toll’s account as a non-performing asset till it commits a default, the court directed the company to deposit Rs 1.71 crore in instalments and interest in a staggered manner before May 15. The court, however, allowed the lender to sell the pledged shares if toll company defaults on making repayments.
The court passed a separate order to restrain ICICI Home Finance from selling the pledged shares on a petition by a non-executive director of MEP Infra.
ICICI Home Finance had sold some of the shares pledged by Ideal Toll after the stock of MEP Infra tumbled, tracking the worst selloff in Indian equities in more than a decade due to the disruption caused by the Covid-19 outbreak. Ideal Toll moved the court to restrain mortgage lender from selling pledged shares and sought return of shares already sold.
Courts in India are granting relief to beleaguered companies hit hard by the outbreak of Covid-19 outbreak and the resultant lockdown imposed by the central government. The Delhi High Court recently restrained Yes Bank from declaring Anant Raj Ltd. as a NPA on similar grounds.