Franklin Templeton: Karnataka HC To Pronounce Judgment Tomorrow On Pleas Challenging Winding Up Of Debt Funds

The bench had begun hearing the matter on a daily basis from August 12, through video-conferencing. The judgement was reserved on September 24, after hearing submissions made by all the parties.

 The petitions were transferred to Karnataka bench after the Supreme Court on June 19, issued an order directing transfer of all the petitions filed in different high courts to the Karnataka High Court, for fresh hearing and disposal. The apex court has fixed a deadline of three months for the high court to decide on the petitions.

The Gujarat High Court had put on hold Franklin Templeton MF's e-voting process for winding up of the six mutual fund schemes. Franklin Templeton had filed a petition in Supreme Court challenging the stay granted by Gujarat high court on the e-voting process. Continuing the interim order of the Gujarat high court the Apex court transferred the matters to the Karnataka High Court.

In April, Franklin Templeton had announced its decision to wind up six debt funds citing low liquidity. Nearly three lakh investors are estimated to be affected by this decision.