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2011 (11) TMI 530 - SUPREME COURTSpecial Court (Trial of Offences Relating to Transactions in Securities) Act - Sale of shares by custodian – appellants and their other family members and the corporate entities purchased more than 90 lakh shares in Apollo - Some shares were registered others were unregistered - entire holding came to be attached by a notification on 6th June, 1992 - Special Court allowed registration of unregistered shares in name of Custodian - Pursuant to order of Supreme Court, a scheme was drafted by Custodian for sale of shares of notified parties, which constituted bulk of attached assets - Special Court approved the scheme, propounded by the Custodian for sale of Controlling Block of Shares in toto and ordered sale of all registered shares, except the shares of Apollo because their objection regarding registration of unregistered shares in the name of Custodian/notified parties, was pending adjudication by this Court – custodian sold the shares at lesser price which could be realized - Special Court rejected the prayer of the appellants to grant them 48 hours' time to secure a better offer - right of the appellants to bring better offer was foreclosed by the Custodian, which evidently was without the permission of the Special Court – Held that:- Special Court also ignored its past precedents whereby it had granted time to the parties to get better offers for sale of shares of M/s Ranbaxy Laboratories Ltd - appellants have been denied a proper opportunity to bring a better offer for sale of shares, resulting in the realisation of lesser amount by way of sale of the subject shares - Special Court has exercised its discretion in complete disregard to its own scheme and 'terms and conditions' approved by it for sale of shares and above all that the impugned order was passed in violation of the principles of natural justice
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