The development came after the Supreme Court ordered disclosure of the results of the vote on the resolution during the annual general meeting (AGM) held on September 29 which the company had withheld.
Prakash Chhabria-led Orbit Electricals, one of the promoters of Finolex Cables, had taken the matter to the Supreme Court, contesting the non-disclosure.
A Supreme Court bench led by Chief Justice DY Chandrachud on Friday ordered scrutiniser VM Birajdar to disclose the results immediately and said the National Company Law Appellate Tribunal (NCLAT) can pronounce the judgement later.
“We are prima facie of the view that the mandate of the order cannot be defeated by deferring the declaration of the result till a judgment is rendered by NCLAT… The NCLAT shall proceed to declare its judgment in the pending appeal after it is duly apprised of the fact that the result of the AGM has been declared,” the top court ordered.
Finolex Cables informed the stock exchanges that about 72.34% of the total investors had voted against the resolution, while 27.66% supported it. Significantly, 93.21% of the promoters opposed Chhabria’s reappointment. In contrast, 64.38% of institutional investors favoured the resolution.
Besides challenging the decision by Finolex Cables to withhold the voting results of its 55th AGM, Orbit Electricals had also filed a contempt petition against the scrutiniser on the grounds that he had intentionally and deliberately breached the apex court’s order of September 26 in relation to the resolution pertaining to the reappointment of Chhabria by withholding the outcome of the voting.Deepak Chhabria and his cousin Prakash Chhabria are engaged in a struggle to gain control of Finolex Cables.
Meanwhile, on Friday evening, the Supreme Court asked NCLAT chairman Justice (retd) Ashok Bhushan to conduct an enquiry and file a report by Monday 5 pm on whether its bench defied the apex court’s orders by pronouncing the judgment at 2 pm, before the AGM results were declared at 2.40 pm.
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