CLB reserves verdict in TPG Nambiar vs son-in-law case

The Company Law Board (CLB) today reserved its judgment on TPG Nambiar's petition in the case between the patriarch of the BPL group and his son-in-law Rajeev Chandrashekhar.

In its reply, the Chandrashekhar camp submitted an affidavit stating that they had no relation with France Telecom as alleged by Nambiar in the last hearing.

France Telecom had transferred the 26 per cent stake in BPL Communications to Essar Teleholdings and companies based in Mauritius in the period between vacation of stay by the Karnataka High Court and grant of stay by the Supreme Court in December.

During the day-long hearing, the board heard arguments to decide whether a petition could be admitted at the Principal Bench when CLB had an additional bench for matters related to the southern region.

"We will prove that the subject matter of our petition is in the western region," said UK Chaudhary, Nambiar's counsel. The Chandreshekhar camp was represented by a team of lawyers led by Anil Dewan.

The Nambiar group argued that an additional bench did not mean that the Principal Bench's jurisdication was curtailed. They also pointed out that in August 2002, BPL Communications had itself approached the Principal Bench while an Additional Bench existed.

The Chandrashekhar lawyers pointed out that there was no case for concurrent jurisdiction between an Additional Bench and the Principal Bench as it would only cause confusion.

At the fag end of the hearing, the lawyers from the Nambiar camp argued that the debate over jurisdiction did not restrict it from passing an interim order. The lawyers expressed concern that the 26 per cent stake in BPL communication may be further dispersed.

In December, the apex Court had heard a special leave petition moved by Nambiar and prohibited shareholders in BPL Communications from disposing of their shares. It had also said that CLB may pass interim orders on various issues in the case.

Nambiar had alleged that Chandrasekhar was acquiring control of mobile business of the group by dealing in the shares of the companies through a complex process against the orders of the Karnataka High Court.

The application by the Nambiar camp asking to implead Essar Teleholding ,Asia Pacific Systems as well as France Telecom and MediaOne Cellular Investment Company in the case is being considered by the board.