2017 (5) TMI 1757 - HC - Indian Laws

Maintainability of petition - Merger of three nonbanking financial companies with a fourth company Hasham Investment and Trading Co. Pvt. Ltd. - petitioner s challenge to the order of the Company Court permitting the merger is pending consideration before the High Court of Karnataka - HELD THAT - Being the order of the Company Court permitting the merger is pending consideration before the High Court of Karnataka this by itself would disentitle the petitioner from maintaining the present writ petition. In as much as the petitioner has made a grievance that his complaints are not being examined by the respondents this writ petition need not be maintained further the petition is thus disposed of with a direction to the respondent nos. 1 and 2 to examine the complaints claimed to have been made by the petitioner and pass orders on the same.

Summary

Issues:
Challenge to the order of the Company Court permitting the merger, Examination of complaints by respondents

Analysis:
The petitioner filed a writ petition as a public interest litigation alleging fraud in the merger of three nonbanking financial companies with another company. The petitioner had also filed Company Applications in the High Court to revoke the merger approval obtained fraudulently. The petitioner emphasized that the scope of the petition extended beyond just revoking the merger, urging the respondents to investigate the reasons for lapses, fix responsibility, and ensure legal actions against the involved entities. The High Court noted that the petitioner's challenge to the merger approval was already pending before the High Court of Karnataka, which would disentitle the petitioner from maintaining the present writ petition. Despite the petitioner's grievances about the examination of complaints, the High Court directed the respondents to examine the complaints and take necessary actions, clarifying that the disposal of the writ petition did not reflect any opinion on the merits of the case. The writ petition and applications were disposed of accordingly with a dasti order.