Supreme Court refuses to relax asset freeze order in RAKIA execution case

The Supreme Court on Thursday refused to entertain any request to vary its earlier order freezing the assets of Matrix Pharma, Tianish Laboratories, Hyderabad-based businessman Nimmagadda Prasad, his daughter Swathi Gunupati Reddy and his son-in-law Pranav Reddy Gunupati in execution proceedings initiated by the Ras Al Khaimah Investment Authority (RAKIA), making it clear that no transaction would be permitted unless the main matter itself is finally decided. [Ras Al Khaimah Investment Authority V Matrix Pharmacorp Private Limited & Anr.] During the hearing, Senior Advocate Shyam Divan, appearing for Matrix Pharma, pressed for permission to seek a variation of the interim order, contending that a proposed transaction would strengthen the company. The Bench, however, was unequivocal in its response. Justice Surya Kant categorically observed that no transaction would be permitted unless the final matter is decided and there is no question of modifying any interim order. The Court declined to engage with submissions that the company would suffer losses of approximately Rs 160 crore if the transaction was not permitted.