The Bombay high court on Tuesday restrained French dairy major Groupe Danone from selling the shares of Avesthagen, a Bangalore-based bionutritional company.
Danone had acquired a 5 per cent stake in the company for $5 million ten days ago.
The Wadia group had filed an appeal in the high court stating that the move violated the joint venture agreement signed by the two companies in 1995. The Wadias and Danone are almost equal shareholders in Associated Biscuits International Holding, which is the majority shareholder in Britannia.
A Wadia group spokesperson said the group was pleased with the high court's stand. Danone officials were not available for comment on the issue.
According to Avesthagen officials, Danone has been asked not to sell its stake in the company till the next hearing, which is scheduled for January 31, 2007.
They added that Danone was investing in Avesthagen purely for biotech R&D and hence there was no conflict of interest with the dairy major's joint venture in India, Britannia. Groupe Danone was represented by Amarchand Mangaldas, while the Wadia group was represented by Crawford Bailey & Co.
The court case is the latest in a series of issues between the Wadia group and Groupe Danone, its joint venture partner.
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