Interim Protection Under Section 9 and Statutory Restrictions on Redemption of Preference Shares
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Case: Ramakrishnan Krishnan v. Gluhend India Private Limited
Court: Bombay High Court
Date: 22-07-2026
Law: Arbitration and Conciliation Act, Companies Act, Code of Civil Procedure.
Highlights of the Judgment:
- An analysis of the principles governing the interpretation of commercial contracts and the necessity of reading agreements as a whole.
- Examination of Section 55 of the Companies Act, 2013, regarding statutory restrictions on the redemption of preference shares from profits.
- The evidentiary value of Indian Accounting Standards (Ind AS) and balance sheet entries in determining the legal character of financial instruments.
- Application of the "prima facie case" and "balance of convenience" standards for interim measures under Section 9 of the Arbitration Act.
- Judicial distinction between a company's commercial inability to pay and the fraudulent dissipation of assets to defeat an arbitral award.
- Discussion on whether the expiry of a redemption period converts a preference shareholder into a creditor of the company.