Gharda’s nephew Darius challenges CLB order in HC

MUMBAI: Darius Kavasmaneck has moved the Bombay High Court to challenge the Company Law Board ( CLB) order that dismissed his application against the proposed sale of a large bloc of shares by Gharda Chemicals’ chairman. Keki Gharda, Darius’ uncle and chairman of Gharda Chemicals, has been in touch with possible buyers to offload 65% stake in the company.

The case came up for hearing on Monday before Justice RS Mohite for the first time, said Mr Kavasmaneck, who holds 33% stake in the company. It will be heard next week. The court has asked the parties to maintain status quo. “We have filed the appeal under section 10F of the Companies Act, which allows a party aggrieved by a CLB order to challenge it,” he said.

The CLB had dismissed Mr Kavasmaneck’s application on the ground that it was a public company and its shares were freely transferable. While Mr Gharda was in talks with some parties to offload his stake, Mr Kavasmaneck had claimed the right of first refusal for the shares.

Mr Kavasmaneck had offered to buy his uncle’s stake at a “fair value”. The “fair value” was based on a formula provided in the company’s Articles of Association, and estimated Mr Gharda’s shares at Rs 650 crore. However, the market value of the 65% stake in unlisted Gharda Chemicals could be at about Rs 1,400-1,500 crore. The Kavasmaneck family’s 33% shares includes the 5% sold to the Godrej Group; but, the transfer of these shares could not be effected due to opposition from Mr Gharda.