ASHIWIN S. MEHTA & ANR. versus UNION OF INDIA & ORS.

ASHIWIN S. MEHTA & ANR. versus UNION OF INDIA & ORS.

The Special Court failed to comply with principles of natural justice by refusing appellants opportunity to bring a better offer, disregarded its own norms and directions of this Court, and exercised discretion arbitrarily, vitiating its sale order; the order must be set aside to the extent indicated.

Source-derived case information.

Parties
Appellant: Ashwin S. Mehta; Respondent: Union of India; Respondent: Apollo Company
Jurisdiction
India
Judgment Date
08 November 2011
Procedural Posture
Civil Appeal / Appeal From Special Court Order
Outcome
Appeal partly allowed
Legal Topics
Attachment of Properties, Sale of Shares, Principles of Natural Justice, Discretion of Special Court, Procedure for Sale of Attached Assets
Securities Law Attachment of Properties Sale of Shares Principles of Natural Justice Discretion of Special Court Procedure for Sale of Attached Assets

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Parties

Ashwin S. Mehta

Appellant

Union of India

Respondent

Apollo Company

Respondent

Procedural Posture

Civil Appeal / Appeal From Special Court Order

Legal Issues

  1. 1 Whether the Special Court's decision to sell shares violated principles of natural justice
  2. 2 Whether the Special Court made genuine efforts to obtain highest price for shares
  3. 3 Whether the exercise of discretion by Special Court was arbitrary and in disregard of its own norms

Ratio Decidendi

The Special Court failed to comply with principles of natural justice by refusing appellants opportunity to bring a better offer, disregarded its own norms and directions of this Court, and exercised discretion arbitrarily, vitiating its sale order; the order must be set aside to the extent indicated.

Court Disposition

Appeal partly allowed

Orders

  • Impugned order of Special Court set aside to the extent indicated
  • Case remitted to Special Court for necessary steps to recover 4.95% shares from Apollo or its management and put them to fresh sale strictly as per approved norms