Franklin Templeton : SC Transfers Pleas In Madras, Delhi & Gujarat HCs Against Winding Up Of Debt Funds To Karnataka HC

The Supreme Court has transferred the petitions pending in the High Courts of Gujarat, Madras and Delhi challenging the winding up of the debt funds of Franklin Templeton to the High Court of Karnataka.

"Let the matters be transmitted to the High Court of Karnataka within 15 days by the concerned High Courts. Let the High Court of Karnataka hear and finally decide the matter, including the SEBI appeal, within three months", ordered a bench comprising Justices Arun Mishra and S Abdul Nazeer on June 19.

The top court has requested the Chief Justice of Karnataka HC to take up matters himself in a Division Bench.

The order came in the transfer petition filed by Franklin Templeton seeking consolidation of various petitions filed with respect to the winding up of debt funds.

The SC however declined to interfere with the June 8 order of the Gujarat HC which stayed the e-voting process for winding up.

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.

The following are the matters directed to be transferred to Karnataka HC :

1. M/s Chennai Financial Markets and Accountability v. SEBI and Others, W.P. 7744/2020 filed before the Madras High Court.
2. Areez Phirozsha Khambatta and Ors. v. SEBI and Ors., Civil Application No. 7201 of 2020 filed before the Gujarat High Court.
3. Amruta Garg (Formerly Amruta Narendra Nikam) v. UOI and Ors., W.P. (Civil) 3366/2020 filed before the Delhi High Court.
4. M/s Chennai Financial Markets and Accountability v. Additional Director General of Police, CRL OP No. 8660/2020 filed before the Madras High Court.
5. SEBI v.Franklin Templeton Trustee Services Pvt. Ltd. bearing LPA No. 311/2020 in SCA No. 7201/2020 filed before the Gujarat High Court.
6. LPA No. 311/2020 - Securities and Exchange and Board of India Versus Franklin Templeton Trustee Services Pvt. Ltd. & Others. 

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