David vs Goliath: Battle lines drawn between Hotel Leelaventure and ITC

The brewing corporate battle between ITC Ltd and Hotel Leelaventure would put the spotlight on the rights and the responsibilities of a player that is both lender and equity holder

Last week, tobacco-to-hotels major ITC Ltd filed a petition in the National Company Law Tribunal (NCLT) under Section 241 of the Companies Act, 2013, accusing Hotel Leelaventure of oppression and mismanagement in the proposed sale of four hotels and property to Canadian private equity player, Brookfield.

Letters of objection were also filed with the Securities and Exchange Board of India (Sebi) by ITC, and state-owned Life Insurance Corporation (LIC), a move that has made the market regulator put the deal on hold. This has prompted experts to question whether minority shareholders — with sizeable financial clout — could turn this