Wadia Ghandy & Co. successfully represented IIFL Finance Limited (IIFL) in obtaining interim relief in its Commercial Suit filed before the Bombay High Court against Asset Care & Reconstruction Enterprise Ltd. (ACRE).

IIFL had assigned various loans to ACRE’s ACRE-110 Trust (Trust) established for the purposes of asset reconstruction activities and simultaneously subscribed to security receipts issued by the Trust, rendering IIFL as a beneficiary and ACRE as a trustee for essentially carrying out recoveries for IIFL’s benefit. Pursuant to certain disputes between IIFL and ACRE, and thereafter between IIFL and ACRE’s associates/ group companies, it is IIFL’s case that ACRE is disentitled from acting as the Trustee due to the hostility and conflict of interest.

The Bombay High Court came to a finding that there is admitted hostility and ACRE was in a position of conflict of interest, and as a result appointed an Independent Observer to oversee ACRE’s functioning.

The matter was led by Senior Litigation Partner Bindi Dave and Partner Ieshan Sinha, who were assisted by Senior Associate Dhruvi Mehta.