The offshore shareholder, which owns 17.88% stake in the company, is seeking the tribunal’s intervention to direct the board of ZEE to hold an Extraordinary General Meeting (EGM) to remove the MD and CEO Punit Goenka from the board and induct six new independent directors.
The Mumbai bench of NCLT, while allowing an oral plea of the lawyers of ZEE to give time to file a response by October 7, has also adjourned the matter to the same day.
Janak Dwarkadas, senior counsel appearing for Invesco, started the argument on Tuesday, stating that ZEE is indulging in forum shopping by approaching the Bombay High Court to restrain the shareholders from calling an EGM.
“The company’s board met on October 1 to decide on the requisition of EGM and they had rejected it. Also, on the same day, they filed a plaint in the Bombay High Court with over 420 pages. This petition is meant to take away the power of NCLT,” argue Dwarkadas. “Is this not forum shopping? If NCLT directs to call for an EGM, they will rush to the High Court to get an injunction on it.”
Countering this, Navroz Seervai, senior advocate, appearing for ZEE argued that the application is not maintainable and needs to be dismissed.
“The (Invesco’s) petition is seeking ad-interim relief as its final relief, which can’t be granted without the full hearing or at the interim stage,” argued Seervai. “Also, the court or tribunal can’t grant an interim relief that alters the status quo.”
A ZEE spokesperson said that the company will continue to take all the necessary steps that are in the best interest of all its shareholders and as per the applicable law.
Law firm Dhruve Liladhar & Co is representing Invesco and OFI Global China Fund in this case. While law firms Trilegal and the Economic Laws Practice (ELP) are representing ZEE and Goenka in the case.
