Prakash Chhabria-led Orbit moves SC over Finolex Cables non-disclosure

Prakash Chhabria-led Orbit Electricals has moved the Supreme Court challenging the decision by Finolex Cables to withhold the results of one resolution voted upon at last month’s annual general meeting.

The resolution relates to the re-appointment of Chairman Deepak Chhabria as a whole-time director of the company. Orbit has accused the scrutiniser of Finolex Cables of committing contempt of court.

Cousins Prakash and Chhabria have been at odds over gaining control of Finolex Cables, a $2-billion pipe and cable manufacturer.

In September, the Supreme Court stated that any action on the mentioned resolution would be subject to the outcome of the appeal pending before the National Company Law Appellate Tribunal.

Earlier this month, Finolex Cables disclosed the voting results for all the resolutions except the one concerning Deepak’s reappointment. The company’s scrutiniser mentioned that the result was deferred until the National Company Law Appellate Tribunal issues its final order.

However, some legal experts believe that Finolex Cables should not withhold the voting results as listed entities are required to disclose all material information. The Supreme Court is likely to address the matter on Wednesday.