Bajaj to move SC over Tempo name change

Bajaj Auto may move the Supreme Court (SC) to stall Bajaj Tempo's move to change the name of the company to Force Motors after having failed to receive a stay order on the issue from the Bombay High Court.

A top source close to Bajaj Auto said the company will decide on moving the apex court in a couple of days.

"Bajaj Auto had filed a petition with the Bombay High Court seeking a stay on the move. The petition was admitted. However, the HC did not grant a stay on the move which means that Bajaj Tempo may go ahead with its proposal and change the name of the company," the source added.

Bajaj Auto, which holds nearly 24 per cent stake, raised objections on the manner in which the name change was planned to be effected. While the promoters, the Firodias, said an ordinary resolution would suffice to effect a name change, the Bajajs insisted on a special resolution.

A special resolution would effectively empower the Bajajs, along with a few other shareholders, to stall the name change.

Soon after the Firodias decided to change the name of Bajaj Tempo to Force Motors, the Bajaj camp took the issue to the Department of Company Affairs, complaining of being "edged" out of the company. However, Bajaj Tempo passed the proposal as an ordinary resolution at an extra-ordinary general meeting held at Pune.

Industry sources Bajaj Tempo has no problem to change the name as things stand now. They said the in all likelihood, the company will opt for a new name and logo but the names of the products may be kept unchanged.