Zandu Pharmaceuticals received a major set back in its attempt to prevent hostile take over by rival health care company Emami as Western region bench of the Company Law Board (CLB) rejected the petition filed by Zandu seeking injunction on Emami's voting rights.
The CLB ruled that, matter was not under its purview.
Zandu has been warding off a take-over bid by Emami, which acquired 24 per cent stake in it by buying shares from the Vaidyas (Zandu's co-promoter family).
In June, Emami announced that it had bought the Vaidyas' stake in Zandu through a share purchase agreement, taking Emami's total stake in Zandu up to 27.5 per cent.