 "SC orders IEX to release Rs 31 cr dividend to FTIL")
The Supreme Court today ordered Indian Energy Exchange (IEX) to release dividend payment of Rs 31 crore to its erstwhile parent Financial Technologies Ltd (FTIL) within two weeks. FTIL wants dividends declared by IEX be paid with respect to shares held by it.
The dividends have already been declared for which there is no dispute.
Since the dividends are declared by IEX and FTIL, a shareholder for the period in question, is rightfully entitled to those dividends. Counsels appeared for IEX stated the company has no objection on payment of the said dividend to FTIL.
The two-judge bench comprising justices A K Sikri and Prafulla C Pant ruled the prayer made by FTIL for release of dividend payment is allowed. Thus, IEX shall release the dividend earned by FTIL on the shares held, the supreme court said.
The FTIL had divested its entire stake in IEX on November 19, 2015, following the regulator Central Electricity Regulatory Commission (CERC) terming the promoter FTIL 'not fit & proper'.
Consequently, the FTIL had asked IEX to release the accrued dividend of approximately Rs 31 crore. The IEX, in reply, had stated it would do so only on clarification from the Supreme Court where FTIL had challenged the authority of CERC to declare FTIL as 'not fit & proper' in the first place.
The FTIL had then filed an application before the supreme court and the matter was listed before justice Sikri and justice Pant on February 9, 2016.
"Through this we were able to secure the rights of our shareholders and recovered the amount of approximately Rs 31 crore, which was due to us as dividend from IEX. We are hopeful that the judiciary will allow us to share this amount and other such payments with its rightful owners - our shareholder - once another case impeding the sharing of dividend by FTIL to its shareholders is decided by the court of law," said Venkat Chary, Joint Chairman, FTIL.