SC stays Padmini Tech case proceedings

NEW DELHI: The Supreme Court on Monday stayed the proceedings in the case of Padmini Technology before the Company Law Board (CLB). The government has, in a plea, before the CLB alleged that the company was not working in public interest and had failed to realise the advance of about Rs 10.45 crore for sale of its software business to Kalyani Finance.

A bench comprising Justice B P Singh and Justice H S Bedi stayed the proceedings before CLB on the plea of Padmini Tech. The Delhi High Court had in its observations noted that the Ketan Parekh group had indulged in price manipulation of the shares of the company.

Senior counsel C A Sundaram appearing for the petitioner company said the high court observation on the transaction and the alleged price manipulation of shares by Ketan Parekh was without proper material on record.

It was alleged that transactions were bogus upon which the high court had observed that the company’s contention that it was a prudent commercial decision not to initiate proceedings to recover the amount of about Rs 10.45 crore owed by Kalyani Finance was nothing but shedding crocodile tears.

CLB in its May 2005 order had asked the centre to appoint two directors on board of the company for a period of two years on government’s petition. The company approached the high court against the decision.

The court order quashed the CLB order and remanded the matter back to the board with some observations. Challenging high court observations, the company moved the apex court.