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As per case facts, the Industrial Investment Bank of India Limited sought to set aside an order confirming an interim injunction. The respondents, C-class preference shareholders, had invested a significant
...amount and challenged the bank's resolution at its 13th Annual General Meeting to redeem their shares at a reduced principal amount, alleging violations of shareholder rights and improper procedures under the Companies Act. The bank argued that the resolution was validly adopted with due consent and notice, contrary to the Single Judge's findings. The question arose whether the resolution altering preference share redemption terms at the bank's 13th Annual General Meeting was valid, considering the requirements of consent from a majority of preference shareholders and proper explanatory notes, and if the interim relief granted was justified in aid of the main suit. Finally, the appellate court found that the bank had provided evidence of substantial shareholder consent, which was not adequately considered previously. Relying on precedents that interim relief must support the final relief, the court determined the injunction was not directly aligned with the primary suit's objective of challenging the resolution's validity. Consequently, the impugned order confirming the interim relief was set aside, and the bank's appeal was allowed.
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