1994 (3) TMI 283 - HC - Companies Law

Further issue of capital - On 9-3-1994 an application was filed before CLB restraining petitioner from continuing with public issue slated to open on 16-3-1994, as a vital fact viz., filing of suit in High Court and order of attachment before judgment passed by court, was suppressed by petitioner - On 10-3-1994 Company Law Board passed an order directing petitioner to mention this fact in any advertisement that was likely to be issued with regard to public issue and the order was notified to lead manager - On 15-3-1994, lead managers informed that they were withdrawing from public issue - Whether petitioner could open public issue on 16-3-1994 and appoint new lead managers to act on its behalf to its public issue - Held yes.

Summary

The High Court of Madras granted a writ of mandamus to the petitioner/company, allowing them to proceed with their public issue opening on 16-3-1994. The Court found that the actions of the respondents in withdrawing support from the issue were arbitrary and without jurisdiction. The petitioner was permitted to open the public issue and appoint new lead managers if needed.