Franklin Templeton: Karnataka HC To Start Hearing Petitions Against Winding Up Of Debt Schemes From August 12

The Karnataka High Court will commence hearing on a daily basis on petitions challenging winding up of six debt schemes of Franklin Templeton, from August 12.

A division bench of Chief Justice Abhay Oka and Justice Ashok S Kinagi said that it will first hear the counsel in a petition filed before the Delhi High court, followed by Gujarat and Madras High Courts. It has put the counsels on notice that on August 21, the matter will be taken up for hearing for the entire day and the counsels should adjust their timetables accordingly.

The bench began hearing on the petitions after the Supreme Court on June 19 directed the transfer of all the petitions filed in different high courts to the Karnataka High Court, for fresh hearing and disposal. The apex court has fixed a deadline of three months for the high court to decide on the petitions.

Earlier , the Gujarat High Court had put on hold Franklin Templeton MF's e-voting process for winding up of the six mutual fund schemes. Franklin Templeton had filed a petition in Supreme Court challenging the stay granted by Gujarat high court on the e-voting process. Sustaining the interim order of the Gujarat High Court, the SC transferred the matters to Karnataka HC.

It was in April that Franklin Templeton announced its decision to wind up six debt funds citing low liquidity. Nearly three lakh investors are estimated to be affected by this decision.