HC asks RPL, Edelweiss to try resolving share sale issue

The Bombay High Court on Tuesday suggested Reliance Power and Edelweiss Group to resolve their dispute over sale of pledged shares amicably while posting the matter for hearing after two weeks.

A division bench of Chief Justice N H Patil and Justice N M Jamdar was hearing a petition by Reliance Power's promoter company Reliance Project Ventures and Management Pvt Ltd. The promoter entity has challenged a single judge bench's order that refused to stop sale of pledged shares by Edelweiss Group or grant any relief to Reliance Power Ltd (RPL).

The division bench suggested the parties concerned to try resolving the dispute out of court and said it would hear the petition after two weeks.

"Such matters can be resolved amicably...outside of court...consider it," Chief Justice Patil said.

On February 13, a single bench presided by Justice K R Shriram said it found no merits in RPL's arguments prima facie and the entire pleadings made by RPL "smacked of deceit".

RPL argued before Justice Shriram's bench that the sale of its pledged shares byEdelweiss' ECL Finance Limited was illegal and must be stopped.

It urged the court to stop such sale as an interim relief and to subsequently declare the sale illegal and void,