HC issues notice to Ranbaxy on disputed shares

The Delhi High Court has issued notices to Ranbaxy Laboratory Ltd on three petitions filed by three trusts - Bhai Gian Chand Mohan Singh Trust, Bhai Gian Chand Sunder DAI Charitable Trust and Montari Charitable Trust - seeking a direction to the former to return the withheld consolidated share certificates in respect of 83,340 equity shares.

The trusts have also sought a direction asking Ranbaxy to retrieve certificates for another 9,916 shares lying with its former chairman and managing director Late Parvinder Singh or issue duplicate share certificates in lieu thereof.

Bhai Gian Chand Sunder DAI Charitable Trust, in its petition, has also sought issuance of consolidated share certificate for 79,358 equity shares and a direction for retrieving of certificates for 10,012 shares lying with the late Parvinder Singh.

Ranbaxy share today closed at Rs 362.40, up by Rs 14 .85 from yesterday's closing, on Bombay Stock Exchange.

The petitions filed through managing trustee Bhai Analjit Singh stated that Ranbaxy had neither any right to deprive the trusts of their valuable shares by withholding the share certificates sent to it for consolidation nor to decline a request for issuance of consolidated certificate.

The public trusts set up by Bhai Mohan Singh, who died on March 27, 2006, stated the company cannot withhold or retain the certificates in perpetuity and was bound to act in accordance with the instructions of the lawful owner.

The petitions alleged that after a number of request, Ranbaxy vide letters dated September 8,1999, and February 7, 2001, had disowned its responsibility for retrieving the share certificates lying with Parvinder Singh.