Rashmi Saluja, Chairperson of Religare Enterprises, has moved the Delhi Excessive Court docket to restrain the corporate from taking on the choice on her re-appointment as director on the firm’s Annual Common Assembly on February 7.
The petition claimed that her present function as a director of REL is legitimate until 2028. Nevertheless, as per Part 152 (6) of the Corporations Act, one-third of the board, excluding impartial administrators, has to hunt shareholder approval to proceed as a Board member. As the only real government director, Saluja faces annual retirement below this rule.
Whereas the attorneys made preliminary arguments on maintainability, the Court docket didn’t grant Saluja reduction, and the case is now listed for February 4.
Showing for Saluja, Senior Counsel Mukul Rohatgi emphasised that her go well with was distinct from the continuing company management battle, arguing that the dispute centres on her contractual retirement phrases.
He urged the court docket to grant an injunction stopping the REL board from passing a decision to take away her or convening a gathering for that objective. By the way, no one appeared on behalf of Religare Enterprises.
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On the opposite aspect, Senior Counsel Nalin Kohli, showing for REL’s 4 impartial administrators, contended that they weren’t even served a replica and that the go well with was ‘virtually collusive’ in nature and pointed to ongoing investigations regarding Saluja.
Burman household’s argument
In the meantime, Senior Counsel Abhishek Manu Singhvi, showing for the Burman household—which holds a 26 per cent stake in REL—argued that any board resolution instantly impacts them, but they haven’t been impleaded within the case.
He additionally cited that the Madhya Pradesh Excessive Court docket lately dismissed the case, and the matter is pending earlier than the Delhi Excessive Court docket’s division bench, the place comparable reliefs are sought.
After listening to preliminary arguments, Justice PK Kaurav directed that every one related paperwork be served on the opposing events and set a timeline for finishing the pleadings by February 3. The subsequent listening to is scheduled for February 4.
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In the meantime, over 85,000 shareholders of Religare Enterprises, which has a market capitalisation of ₹10,000 crore, are anticipated to vote on varied proposals on the essential juncture within the ongoing energy wrestle between Saluja and the Burman household, who’ve been looking for better management of the corporate.
With a number of authorized proceedings unfolding, the decision of the matter stays unsure, including one other layer of complexity to the high-stakes company battle at REL.
