CLB to start hearing Zandu Pharma case next week

The Mumbai bench of the Company Law Board will start its hearing next week in the case filed by Zandu Pharmaceuticals opposing take over bid by rival Emami Ltd following the directions of the High Court.     

According to the sources, the Company Law Board would hear the matter next week at its Western region Bench in Mumbai.     

Earlier, on August 7, a single member bench of the Mumbai High Court of Justice S A Bobde had set aside the order of the CLB passed on July 28 and directed it to look into the matter again and pass an order within 15 days.     

Justice Bobde had also directed to postpone the scheduled AGM of Zandu Pharmaceuticals to be held on August 9.     

On July 28, after a brief hearing, the CLB had directed Zandu and Emami to approach Sebi as both were listed firms. It added the market regulator was the right authority to look into any acquisition disputes.    

 Later, Zandu had challenged this order before the High Court.     

Zandu had filed an application before the CLB challenging acquisition of its shares by Emami on the grounds that it was in violation of the Sebi Act, 1992, Sebi Takeover Regulations, 1997, Sebi Insider Trading Regulations, 1992 and the Companies Act, 1956.     

The company had requested CLB for rectification of register of members of Emami in relation to acquisition of shares and to suspend its acquired voting rights.    

Emami acquired 27.5 per cent stake in it held by the Vaidyas, who were partners with the Parikhs in the pharmaceutical firm.

The Parikhs had contended the stake sale claiming the first right of refusal.     

As per law, Emami is required to make an open offer for a minimum of 20 per cent share in Zandu.