CLB restrains BPL firms from transferring shares

The Company Law Board (CLB) has restrained BPL Communication, BPL Mobile Communication and BPL Mobile Cellular from registering transfer of shares by the members of such companies until further orders.

This sets the stage for the hearing on the actual dispute between TPG Nambiar and his son-in-law Rajeev Chandrashekhar as the arguments at CLB, Delhi, had been over whether the board here had the jurisdiction to decide over the matter.

In its interim order, the Chennai board also restrained BPL Mobile Communication and BPL Mobile Cellular from disposing of the licences without the permission of the bench till the disposal of the Petition.

"We are bracing for another round of litigation. This interim order does not affect us as there is no plan anyway to divest the shareholding," a senior BPL Mobile executive said.

Nambiar and his investment companies had instituted a fresh petition before the additional principal bench of the CLB at Chennai after their petition at the Delhi CLB was not taken up on the question of jurisdiction.

With the issue of jurisdiction settled after the board at Delhi directed the Nambiar camp that only the Chennai bench could take up the matter the case seems set for protracted battle.