The Calcutta High Court has debarred Hindusthan National Glass and Industries Ltd from going ahead with its rights issue.
Responding to a petition filed by the Rajendra Kumar Somany group against the Chandra Kumar Somany group, Justice R K Mitra passed the order yesterday. The company had earlier proposed to increase its authorised share capital from Rs 7.5 crore to Rs 11.5 crore by issuing 40 lakh equity shares of Rs 10 each on a rights basis. The management intended to seek shareholders' approval at the company's forthcoming annual general meeting scheduled for August 24, 1998,
The Rajendra Kumar group had moved the petition on the ground that the other group, in the pretext of modernisation and up-gradation of the company, is planning to increased its authorised share capital but their real intention was to regain their wrongful and illegal control over the company.
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S B Mookherjee, P C Sen, Bhaskar Sen and S N Mookherjee, appeared for the Rajendra Kumar group. The counsel claimed that the proposed rights issue is illegal and violates the memorandum of the articles of the company.
The petition sought the court's order restraining the company from conducting the AGM, and from taking any steps to increase the company's authorised capital. Anindya Mitra, S K Kapoor and P Jhunjhunwala appeared for Hindusthan National Glass and the Chandra Kumar group.