HC restrains BR Shetty from transferring assets

BENGALURU: Allowing the appeal filed by Bank of Baroda, the Karnataka High Court granted temporary injunction, restraining businessman Dr BR Shetty and his wife or their agents from alienating or transferring movable assets such as shares, mutual funds, and monies deposited in their bank accounts. 
However, as regards the other movable properties held by Shetty and his wife, the court said it will always be open for him to apply to the bank for permission to transfer the same. 

A division bench of Chief Justice Abhay Shreeniwas Oka and Justice Sachin Shankar Magadum passed the order, in respect of the appeal filed by the bank. The bank filed the appeal against the order passed by the commercial court on August 28, 2020, allowing in part its plea. The commercial court passed injunction order in relation to immovable properties of Shetty and his wife. Contending that it had advanced Rs 2,077.44 crore to Shetty and the entities controlled by him, Bank of Baroda approached the commercial court for injunction order for both movable and immovable assets.  

Allowing the bank’s appeal, the High Court said that Shetty, by his reply dated May 7, 2020, virtually declined to comply with the requisitions in the legal notice sent to him on May 3, 2020. Prima facie, it is Shetty’s obligation to disclose details of all other movable and immovable properties held by him. He is under obligation not to sell or transfer the same without consent of the bank. Thus, there is no manner of doubt that a prima facie case was established by the bank, the court said.