Disputed 2.5% shares must be transferred pending suit, subject to its final outcome.

The dispute arose from a Shareholding Agreement dated 22 August 2025. The plaintiff, Purple Rock Infra Private Limited, had paid ₹10 crore but alleged that the appellant had not transferred the remaining 2.5% shares covered by the agreement; it filed a suit for specific performance

The Commercial Court allowed the plaintiff’s applications for interim relief and dismissed the appellant’s application, restraining changes to the defendant company’s shareholding and directing that debit operations in two company bank accounts be frozen

The appellant appealed under Section 13(1A) of the Commercial Courts Act, 2015, and offered to transfer the 2.5% shares within one week, subject to the suit’s outcome. The plaintiff did not object to that proposal

1. Whether the Commercial Court’s interim order should be modified in light of the appellant’s offer to transfer the disputed 2.5% shares, subject to the suit’s outcome.

2. Whether the interim protection over the company’s bank funds should continue pending disposal of the suit.

The appeal was brought under Section 13(1A) of the Commercial Courts Act, 2015, read with Order XLIII Rule 1(r) of the Code of Civil Procedure, 1908, which provide for appeals from specified orders, including orders concerning temporary injunctions.

The judgment does not set out or apply a separate substantive test or cite precedent for interim injunctions; it resolves the appeal by modifying the interim order on the basis of the appellant’s undertaking and the plaintiff’s lack of objection.

The Court considered that the existing restraint affected the company’s entire shareholding structure, while the plaintiff’s claim concerned 2.5% shares. The appellant offered to transfer those shares within one week, with the transfer remaining subject to the final outcome of the suit, and the plaintiff did not oppose the proposal.

The Court therefore modified the interim arrangement to permit the transfer while preserving the parties’ positions on the merits and continuing the freeze over the funds remaining in the two current accounts.

The appellant was directed to transfer 2.5% of the shares in defendant No. 4 to the plaintiff within one week, subject to the suit’s final outcome; the capital remaining in the two current accounts was to remain frozen until disposal of the suit.

All contentions were left open, and the Commercial Court was requested to proceed expeditiously.