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Issues involved: Interpretation of Regulation 12 of SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 1997.
Summary: The civil appeal was filed against the order of the Securities Appellate Tribunal (SAT) which held that the Respondent did not acquire control in the Target Company and thus was not required to make a public offer under Regulation 12 of the Takeover Regulations. However, during the appeal, the Respondent submitted that they had not appointed their Director on the Board, had sold their stake in the Target Company, and retained only about six per cent shareholding. It was also revealed that another company, M/s. Welspun, had acquired majority stake and control of the Target Company, complying with Regulations 10 and 12. Considering these developments, the Court decided to dispose of the appeal, leaving the question of law open and clarifying that the SAT's order would not set a precedent. The civil appeal was thus disposed of without any costs.
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