Malhotra v Malhotra & Anor

Malhotra v Malhotra & Anor

The court held that at this preliminary stage, the defendants have shown an arguable case that the English injunction caused them loss and that the reflective loss principle does not summarily bar their claim. Therefore, an inquiry as to damages under the cross-undertaking will be ordered.

Parties
Claimant: Mr Rakesh Malhotra; Defendant: Mr Rajinder Kumar Malhotra; Defendant: Mr Rajiv Malhotra
Jurisdiction
England and Wales
Judgment Date
31 January 2014
Procedural Posture
Commercial Application / Application for Inquiry as to Damages Under Cross Undertaking
Outcome
Inquiry as to damages ordered
Legal Topics
Cross Undertaking in Damages, Reflective Loss, Shareholder Claims, Causation of Loss, Injunction Discharge
Commercial Law Injunctions Company Law Cross Undertaking in Damages Reflective Loss Shareholder Claims Causation of Loss Injunction Discharge

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Parties

Mr Rakesh Malhotra

Claimant

Mr Rajinder Kumar Malhotra

Defendant

Mr Rajiv Malhotra

Defendant

Procedural Posture

Commercial Application / Application for Inquiry as to Damages Under Cross Undertaking

Legal Issues

  1. 1 Whether the defendants have shown credible evidence of loss caused by the injunction to justify an inquiry as to damages under the cross-undertaking
  2. 2 Whether the losses claimed are precluded by the reflective loss principle
  3. 3 Whether the losses were caused by the English injunction or by the Indian court orders

Ratio Decidendi

The court held that at this preliminary stage, the defendants have shown an arguable case that the English injunction caused them loss and that the reflective loss principle does not summarily bar their claim. Therefore, an inquiry as to damages under the cross-undertaking will be ordered.

Court Disposition

Inquiry as to damages ordered

Orders

  • Inquiry as to damages under the cross-undertaking is ordered; directions to be given after hearing counsel.