Franklin Templeton debt schemes: Karnataka HC to first hear pleas transferred from Delhi HC on August 12

The Karnataka High Court today said that it will begin hearing the batch of petitions challenging the winding up of six mutual fund schemes of Franklin Templeton on August 12. .In its order, the Bench of Chief Justice Abhay Shreeniwas Oka and Justice Ashok S Kinagi further clarified that petitions transferred from the Delhi High Court will be heard first, followed by matters from the Gujarat High Court, and finally those from the Madras High Court. .The Court further said that from August 12, the matters will be heard in the afternoon session. As the Court is bound to hear the matter within three months, as per the Supreme Court direction, it stated that the hearings would have to be taken up on holidays as well. .As August 21 is a holiday for the Court, the Bench said that the matter would be heard in the morning session, as well as in the afternoon session. .The Bench also urged all lawyers to adjust their timetable to the dates set by the Court, as many staff members of the High Court have been affected with COVID-19..Franklin Templeton debt schemes petitions: Karnataka HC to fix schedule for hearing cases on August 7 .Conceding to a suggestion made by an advocate, the Bench additionally said that it would be open for parties to file writ submissions in advance by email addressed to the Registrar General..On June 19, the Supreme Court had directed the transfer of all petitions related to the winding up of six Franklin Templeton India debt schemes from the High Courts of Delhi, Madras and Gujarat to the Karnataka High Court within 15 days..SC transfers all pleas challenging winding up of Franklin Templeton debt schemes to Karnataka HC, directs CJ to decide matter in 3 months.Franklin Templeton, India’s ninth-largest fund house, had in April notified its investors that it was winding up the Franklin India low duration fund, dynamic accrual fund, credit risk fund, short term income plan, ultra-short bond fund and income opportunities fund, cumulatively worth nearly Rs 28,000 crore..Almost three lakh investors are set to be affected by Franklin Templeton’s decision to wind up its debt mutual fund schemes. The company had cited lack of liquidity in the bond market due to COVID-19 for its decision.