Calcutta High Court orders for Security in Pending Commercial Suit

A dispute arose after purchasers allegedly failed to pay the balance consideration for shares in a company connected with a steel plant in Georgia. While the purchasers alleged that they had not received effective control of the plant and questioned the sellers’ disclosures, the sellers relied on the share-sale contract, the transfer of shares and written acknowledgment of possession. The Calcutta High Court invoked its inherent powers under Section 151 CPC and directed the purchasers to deposit ₹5.43 crore, subject to the final outcome of the suit.