Harsh Lodha: Watchful

Calcutta, July 27: The Lodha camp today scored a tactical victory over the Birla family after the Supreme Court asked Calcutta High Court to “expeditiously” pass a verdict on the Company Law Board’s order on Birla Corporation.

The Supreme Court’s observation was in response to a plea filed by Harsh Lodha, seeking the apex court’s permission to chair the annual general meeting (AGM) of Birla Corporation today.

The Company Law Board (CLB), in an interim order, had barred Lodha from chairing the AGM of the company. Lodha had challenged the CLB order in Calcutta High Court, but a judge had refused to hear the matter on personal grounds. Subsequently, Lodha moved the Supreme Court.

The apex court’s directive should ensure speedy disposal of the matter thereby improving Harsh Lodha’s chances of becoming the chairman of Birla Corporation.

After the Supreme Court’s ruling, Birla Corp chose to adjourn the AGM for close to a month. Lodha said the decision was taken in the light of legal proceedings.

The CLB, in its interim order, did not stop today’s AGM but had asked the company not to announce any of the resolutions, including the appointment of directors and declaration of dividend, if passed during the meeting.

Both the Lodha and Birla camps moved against the order. While the Lodha camp wanted the interim order to be stayed or disposed of quickly in Calcutta High Court, the Birla camp sought a freeze on Lodha voting rights, which was denied by the CLB.

The AGM, scheduled to begin at 10.30 am, could not start when one of the 460 shareholders present at Uttam Mancha in south Calcutta, demanded a poll on a proposal to make Pracheta Majumdar the chairman for the proceedings.

As the poll began here, lawyers of Fox and Mandal, the counsel for Lodha, appeared before the Supreme Court around 11.30am, seeking a stay on the CLB order.

Soon it became clear that Harsh Lodha could not chair the AGM.

The management came up with poll results at around 2.15pm that showed Pracheta Majumdar had been elected to chair today’s proceedings.

Majumdar then told the shareholders that the meeting would be adjourned today. The matter again went to poll and the final decision to reconvene the same on August 24 was announced at 4.45pm.