Wed. Sep 23rd, 2020

Ms Shoes East Ltd. vs R.K.Singh & Co. on 18 September, 2015

1 min read

1. Case of the appellant pleaded in the plaint is that the defendant is a
broker and provides financial services, inter-alia, as broker to procure
applications concerning public issues. As per the appellant it decided to
raise capital by way of a public-cum-right issue aggregating
`6,99,00,000/- as also a public issue of fully convertible debentures
aggregating `3,49,93,75,200/-. SBI Capital Markets Ltd. (SBI Caps) was
the Lead Manager. In consultation with the Lead Manager, the appellant
had a scheme to provide incentive to brokers who gave firm commitment
to bring investors i.e. procure applications for allotment of fully
convertible debentures. The defendant committed to procure subscription
amount of `31 crores towards the public issue of fully convertible

debentures. Appellant released 50% of the incentive amount i.e.
`15,00,000/- by two cheques dated January 30, 1995 and February 07,
1995. Since the defendant failed to procure the committed subscription,
refund of `15,00,000/- together with interest @ 18% per annum from
April 18, 1995 till when suit was filed on April 17, 1998 i.e. `8,10,000/-
was prayed for. Pendente lite and future interest @ 18% was prayed for.

Source: Indian Kanoon

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