The National Company Law Appellate Tribunal (NCLAT) on Thursday stayed proceedings on the petition filed by minority shareholders of TV9 led by its former chief executive officer Ravi Prakash, a week after NCLT Hyderabad admitted their petition.
The NCLAT was responding to a petition filed by Alanda Media & Entertainments, the holding company of two Hyderabad-based infrastructure NSE -0.65 % firms that now claims to own 90.54% in Associated Broadcasting Company (ABCL), the operator of TV9 bouquet of channels.
The appellate tribunal, comprising chairperson Justice SJ Mukhopadhaya, judicial member Justice AIS Cheema and technical member Kanthi Narahari, directed the NCLT Hyderabad to allow a fund of SAIF Partners to withdraw its contempt petition against the ABCL promoters.
The apex tribunal has posted the case for July 9.
Last week, the minority shareholders moved the tribunal alleging a violation of its restraining orders by the majority shareholders led by Alanda Media, while seeking to set aside the sale of ABCL in favour of the holding company of infrastructure firms.
The minority shareholders sought to block the appointment of four nominees of the new owners to the company’s board. They also alleged oppression and mismanagement. They together claim to hold a 9.43% stake in ABCL and sought to set aside the decisions of new board members of majority shareholders, restrain the majority shareholders from infusing fresh capital, which would help Alanda Media to further consolidate its stake at the cost of minority shareholders.
The tribunal had on September 4 last year passed orders restraining ABCL from selling shares or assets, while responding to a petition by SAIF III Mauritius Company. The fund of SAIF sought to prevent the sale of TV9 by its then majority shareholder and venture capitalist Srini Raju and associates. The fund claimed that the money it had invested 10 years ago in IVision Media, a firm controlled by Srini Raju, were given to ABCL as inter-corporate deposits to help siphon off the money.
Last month, NCLT Hyderabad bench admitted the contempt petition filed by SAIF against Srini Raju and associates, accusing them of selling TV9 for around Rs 460 crore in favour of Alanda Media in violation of the restraining orders.
Raju, who says the tribunal’s orders not to alienate shares and assets were directed at ABCL and not its shareholders, recently offered a compromise deal to SAIF by agreeing to pay Rs 65 crore. Following this, the Mauritius fund informed the tribunal that it would now like to unconditionally withdraw the contempt petition. The tribunal, which heard the case on Monday, reserved its judgment and posted the case for May 23.
While directing NCLT Hyderabad on Thursday to allow SAIF to withdraw its contempt petition, NCLAT ordered the NCLT to specify reasons in case of refusal and not to pass any interim order. Following this, the NCLT Hyderabad will take up on Friday the SAIF’s plea to withdraw its contempt petition.
Source: Economic Times