2018 (5) TMI 2177 - SCH - Companies Law

Examination of time for making payment - buyout amount determination - valuation of shares - HELD THAT - Petitioner wishes to examine in how much time this payment can be made. List on Thursday, the 17th May, 2018.

Summary

Issues involved: Valuation of shares, buyout amount determination, payment timeline examination.

The Supreme Court, comprising Hon'ble Mr. Justice Rohinton Fali Nariman and Hon'ble Mr. Justice Abhay Manohar Sapre, heard the learned Senior Counsels for both parties and considered the valuation figures presented. The Valuation Report submitted to the High Court suggested a buyout sum of Rs. 72 Crores for the respondent's shares, whereas the parties had differing views on the appropriate amount. Mr. P. Chidambaram and Mr. Mukul Rohatgi contended that only Rs. 187 Crores, roughly 19% of the land value, remained in the Company. Mr. Mukul Rohatgi offered a "rock bottom sum of Rs. 113 Crores." In the exercise of its powers under Article 142 of the Constitution, the Court directed a payment of Rs. 100 Crores to be made to the Respondents for the buyout of all their shares in the Company.

Mr. Kapil Sibal, the learned Senior Counsel for the petitioner, expressed interest in determining the timeline within which this payment of Rs. 100 Crores could be made. The Court scheduled the matter for further consideration on Thursday, the 17th of May, 2018.