Karnataka HC Issues Notice To Franklin Templeton And Others On Plea Challenging Winding Up Of Debt Schemes

The Karnataka High Court on Wednesday issued notice to Franklin Templeton India and other respondents on pleas challenging the winding up of six of its debt schemes. It has directed respondents to file their reply/counter/statement of objections by July 22 and rejoinder if any is to be filed by applicants is to be filed by July 29.

A division bench of Chief Justice Abhay Oka and Justice Ashok S Kinagi began hearing on the petitions after the Supreme Court on June 19, issued an order directing transfer of all the petitions filed in different high courts to the Karnataka High Court, for fresh hearing and disposal.

The apex court had said that the matters should  be decided within three months time.

The HC bench indicated that after the pleadings are completed and the schedule for hearing is fixed, it will take up the matters for hearing twice or thrice in a week in the afternoon and may be even on Saturdays and senior counsels appearing in the matter should make proper adjustments.

The bench also directed the registry to remind the Registrar General of Madras High Court to transfer the paper of the matters which the apex court has directed to be heard by the High Court of Karnataka. Those, matter if received, will be heard on July 15.

Earlier this month, 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. Continuing the interim order of the Gujarat HC, the apex court transferred the matters. 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.