Justice SR Krishna Kumar pronounced the decision this afternoon, after having reserved orders in the matter last week.
The judge told today that the order has been passed on merits and that the matter has been sent back to the NCLT (possibly for reconsideration) for further hearing.
A lawyer representing certain investors requested the Court to stay the operation of today’s order so that it may be challenged and no shareholder rights are diluted in the meantime.
The Court, however, refused to stay the order’s operation.
Justice Kumar observed that he had given an opportunity earlier for all rival sides to arrive at an agreement so that an order may be passed on consent to send the matter back to the NCLT.
However, since no such consensus has been arrived at, the matter has now been decided on merits, he said.
“I gave you a chance, the investors were not ready. Unless they agree, I won’t be in a position to grant any order (on consent) … You are at the mercy of promoters … The promoters did not want to concede anything, therefore I was forced to do this. I had no choice,” Justice Kumar told advocate Shankh Sengupta.
The detailed judgment would be made available tomorrow, the judge added.
Source: Barandbench
