The Hon’ble Sri Justice C.V.Nagarjuna Reddy Company Appeal No.19 of 2013
Dated 15.04.2014
Between:
JK Tyres & Industries Limited 7, Council House Street, Kolkata – 700 001 and 8 others …Appellants And V.S.Lignite Power Private Limited 8-2-293/82/A/431/A, Road No.22, Jubilee Hills, Hyderabad – 500 033 and another …Respondents Counsel for the Appellants: Mr.S.Ravi, Senior Counsel for Sri Rajesh Maddy Counsel for respondent No.1: Mr.Shankar Narayana Senior Counsel for Mr.Ch.Ramesh Babu Counsel for respondent No.2: Mr.Vijay Kumar The Court made the following:
Judgment:
This Company Appeal arises out of order, dated 05-08-2013, of the Company Law Board, Chennai Bench, Chennai, in Company Petition No.24 of 2013.
This Court has extensively heard Sri S.Ravi, learned Senior Counsel appearing for Sri Rajesh Maddy, learned Counsel for the appellants, Sri Shankar Narayana, learned Senior Counsel appearing for Sri Ch.Ramesh Babu, learned Counsel for respondent No.1, and Sri Vijay Kumar, learned Counsel for respondent No.2, on 26-03-2014. During the hearing, this Court has suggested to parties on both sides whether respondent No.1 can be permitted to raise money by issuing fresh equity shares, while putting on hold resolution 2 (a) pertaining to conversion of category B shares into equity shares.
Today, at the hearing, the Mr.S.Ravi, learned Senior Counsel, has stated that pending Company Petition No.24 of 2013, resolution 2 (a) passed by the Board of Directors of respondent No.1- Company may be put on hold by giving liberty to respondent No.1 to issue fresh equity shares, if the Board of Directors of respondent No.1- Company passes a resolution to that effect.
Sri Shankar Narayana, learned Senior Counsel for respondent No.1, and Sri Vijay Kumar, learned Counsel for respondent No.2, have stated that their respective clients have no objection for such a course.
In view of the consensus reached among the learned Counsel for the parties, the Company Appeal is disposed of in the following terms:
1. Resolution 2 (a), which is the subject matter of Company Petition No.24 of 2013 before the Company Law Board, Chennai Bench, Chennai, is put on hold, pending the said Company Petition;
2. This order will not preclude respondent No.1- Company from raising fresh equity provided its Board of Directors passes a resolution in this regard; and
3. This order will govern the parties till disposal of Company Petition No.24 of 2013.
(C.V. Nagarjuna Reddy, J) 15th April, 2014
LUR