Franklin Templeton Files Additional Affidavits After Karnataka HC Reserves Judgment

A division bench of Chief Justice Abhay Oka and Justice Ashok S Kinagi has directed the Fund House to serve the affidavits to the advocates appearing for the petitioners. It said "Only if the petitioners have any objection they can file a memo on record, so that cases can be again listed for considering their objections. If they don't have any objections they can file a memo to that effect."

The bench began hearing on the batch of petitions challenging winding up of six debt schemes of Franklin Templeton, on a daily basis from August 12, through video-conferencing. The judgment was reserved on September 24, after hearing submissions made by all the parties.

The bench first heard the counsel in a petition filed before the Delhi High court, followed by Gujarat and Madras High Courts. The petitions were transferred to Karnataka HC 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 fixed a deadline of three months for the high court to decide on the petitions.

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 high court the apex court transferred the matters.

In April, Franklin Templeton had announced its decision to wind up six debt funds citing low liquidity. Nearly three lakh investors are estimated to be affected by this decision.