Moneycontrol
Last Updated : Dec 21, 2013 05:42 PM IST | Source: CNBC-TV18

Why BNP Paribas lawyer feels K'taka HC order is correct

Fereshte Sethna, lawyer representing BNP Paribas, one of the creditors that won the decision in Karnataka HC today, which declared that the share sale of United Spirits Ltd (USL) to Diageo by United Breweries Holdings Ltd (UBHL) null and void, shares her views.


The Karnataka High Court declared the share sale of United Spirits Ltd (USL) to Diageo by United Breweries Holdings Ltd (UBHL) null and void.


Fereshte Sethna, lawyer representing BNP Paribas says at the time when the transaction in question was entered into, Diageo was fully alive to the fact that there were at that point in time already five winding up petitions pending in the Karnataka high court. There was an absence of insolvency requirement that was stipulated in the contractual documentation, she says.

Hence, UBHL and Diageo both took a calculated risk in terms of proceeding ahead with signing up to a contract and thereafter proceeding ahead to put through a transaction which was still to go through an appellate stage, she told CNBC-TV18.

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First Published on Dec 20, 2013 10:46 pm
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