Court order stops Birla Corp AGM midway
24 Jun 2010
The annual general meeting of M P Birla group flagship Birla Corporation (controlled by the Lodhas) got adjourned midway on Wednesday after it was stayed by a city court.
The meeting has now been rescheduled for 29 June. Even last year, Birla's AGM had to be adjourned following a court directive.
The drama over Birla Corp's AGM has been brewing for the past couple of days. The Birlas had moved the Company Law Board (CLB) urging that Birla Corp's meeting be stalled. The CLB, however, had passed a verdict in favour of the Lodhas.
Not satisfied, the Birlas subsequently moved Alipore Court seeking stay for the alleged irregularities in Birla Corp accounts. The application was filed by P K Surekha, a Birla Corp shareholder. The stay was obtained late on 22 June evening and, according to the Birlas, "served on the company at its head office at Birla Buildings, Kolkata, at 9.45 am" on Wednesday.
Meanwhile, the Lodhas have moved the high court against the order rescheduling the meeting. The matter would be heard tomorrow, said Debanjan Mandal, partner, Fox & Mandal, solicitors for the Lodhas.
"Our contention is that the petition is completely malafide to obstruct the functioning of the company," Mandal said, adding, "The petitioner, Prabhat Sureka, is the son of Devki Kumar Sureka, who is an employee of Birla."