Delhi HC directs 4B Networks to not sell or transfer its assets, ET RealEstate

August 27, 2023

NEW DELHI: Delhi High Court has inter-alia directed 4B Networks to not sell, transfer, alienate, encumber or otherwise create any third- party rights or interest directly or indirectly in the assets and properties of 4B Networks (whether tangible or intangible, Info Edge (India) informed in a BSE filing.

The court has also directed the company to preserve all books, records, accounts, databases, servers, any other devices, documentation or information of 4B Networks.

The matter has now been referred to arbitration and the parties have agreed to the appointment of a sole arbitrator. Further, the aforementioned order shall continue to operate until the disposal of the application for interim measures of protection by the arbitrator.

Allcheckdeals India (AIPL), a wholly-owned subsidiary of Info Edge (India), had made financial investment and provided various funding from time to time to 4B Networks amounting to Rs 288 crore.

AIPL exercised its contractual rights under the shareholders’ agreement and articles of association of 4B Networks, pursuant to which, it initiated a forensic audit into the affairs of the 4B Networks.

The forensic audit was initiated in the backdrop of various instances whereby 4B Networks, under the leadership and direction of its promoter, Rahul Yadav, have failed to provide AIPL with crucial information in respect of the operations and management of 4B Networks, including details and particulars of financial transactions, transactions with related parties and such other aspects from 4B Networks and its current management – all of which are required to be provided to AIPL contractually under the shareholders’ agreement and articles of association of 4B Networks.

Despite the initiation of the forensic audit by AIPL and repeated requests for crucial information, the management of 4B Networks failed to provide any such information or cooperate with the advisors of AIPL for conducting the forensic audit, the company said in the regulatory filing.

AIPL then filed a petition before the Delhi High Court for interim measures of protection against 4B Networks, Rahul Yadav and Pratik Choudhary.

  • Published On Jul 26, 2023 at 08:00 PM IST

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