BPL group patriarch TPG Nambiar received a setback in his legal battle with son-in-law Rajeev Chandrasekhar, with the Company Law Board today rejecting his plea for restraining the sale of shares in BPL's three telecom ventures controlled by Chandrasekhar.
In its order on an interlocutory petition, the Additional Principal Bench, Chennai, however, asked the three BPL telecom companies -- BPL Communications, BPL Mobile Communication and BPL Cellular -- to file a status report to the Bench "in the event of any change in the shareholding of these firms within seven days of every such change".
An order issued by CLB Member KK Balu upheld an earlier order, issued in March 2005, that allowed transfer of shares in the BPL's three telecom companies subject to a week's notice being given to Nambiar to give him the option to move the Bench.
The CLB also asked the three telecom companies to produce all statutory and other relevant records for authentication. The CLB order has appointed a Chennai-based advocate to authenticate the records in presence of both the Rajeev Chandrashekar and Nambiar groups.
In addition, in the event shares are sold in the three companies, the companies are required to inform the CLB Bench and Nambiar within seven days of the transfer.
The interim order that was upheld today had stated that transfer of shares in the BPL telecom companies "shall be subject to a final order that may be made in the company petition".
Nambiar had petitioned the CLB seeking to modify the March 17 order, saying "the order does not in anyway restrain shareholders of BPL Communications, BPL Mobile Communication and BPL Cellular from selling their shares".
BPL Communications is the holding company of BPL Mobile Communication and BPL Cellular.
BPL Mobile Communication is the cellular operator for Mumbai while BPL Cellular is the cellular operator for Tamil Nadu, Kerala and Maharashtra (excluding Mumbai).
In his petition to modify the CLB's March 17 order, Nambiar asked the Bench to restrain Electro Investment P Ltd, Namfil Finance Company Pvt Ltd, and Nambiar International Investment Company Ltd from directly or indirectly acquiring the shareholding in the three telecom ventures of BPL.
The CLB order said if these companies transferred shares in or acquires shares of BPL Communications, BPL Mobile Communication and BPL Cellular, "They should give seven days prior notice to the first petitioner (TPG Nambiar) to enable him to move this holding, if he so desires."
The CLB has asked the respondent companies to file counter-statement and the application to the bench by June 15, 2005.
BPL's consumer electronic division is managed by TPG Nambiar and son Ajit Nambiar, while the telecom and communications business, which comes under BPL Innovation Group is controlled by Nambiar's son-in-law Chandrasekhar.
The CLB is hearing a petition filed by Nambiar, which alleges that Chandrasekhar took control of the telecom business of BPL, by reducing Nambiar's stake to about 7.24 per cent over a period of time.
The CLB will hear the main petition by Nambiar on July 11, 2005.
