The shares have been of a long running dispute. The judgment issued by Justice J Takuva, will open a can of worms in the equities industry, as the shares in question had already been the subject of "normal trade" in the market, before the eruption of the dispute two years ago.
Interfin had put up the defence that it was no longer possible for the shares to be returned as they had been on sold to third parties but the High court judge threw this defence out saying Interfin's argument defied logic in that it did not explain why Interfin accepted the re-payment on a loan for which liquidated the security.
"Applicant has shown that respondent actually sold the shares after it had received payment in full," ruled Justice Takuva.
"This clearly shows that the respondent does not have bonafied defence. In the results, I make the following order (that) the respondent be compelled to return immediately the . . . share certificates and shares . . . within three days of this order failing which the Deputy Sherriff is authorised to size the share certificates and shares from the respondent or whoever may be in possession of the said certificates and shares."
The shares in dispute were for
The dispute arose after Interfin advanced a
After Interfin failed to return the shares and certificates,
Innocent third parties are likely to be affected by the judgment as shares exchanged are delivered in negotiable order after being traded on the open market. A buyer of shares can further sell them to other third parties and these parties who may not have anything to do with the share dispute between the two brokers.
Most Popular Stories
- Chobani Counters Competition With Expanded Lineup
- Pope Francis, Huge Crowd Joyously Celebrate Easter
- Automakers Turn to China to Fuel Sales Growth
- GM Boosting China Production Capacity
- GOP Making Bold Play for Oregon Senate Seat
- Confusion, Anger as Sunken Ferry's Relatives Wait
- NASA's Space Station Robonaut Finally Getting Legs
- Report: Iran VP Says Row Over Reactor Resolved
- Ohio Couple Married 70 Years, Die 15 Hours Apart
- Delay in Ferry Evacuation Puzzles Maritime Experts