SC stays CLB proceedings on Padmini Tech plea

NEW DELHI: The Supreme Court has stayed proceedings of Padmini Technologies before the Company Law Board (CLB). The government had, in a plea before the CLB, said the company was not working in public interest and had failed to realise the advance of about Rs 10.45 crore for the sale of software business to Kalyani Finance. A bench comprising Justice BP Singh and Justice HS Bedi stayed the proceedings before CLB on the plea of Padmini Technologies. The court also issued notice to Centre on the petition of Padmini Technologies.

The Delhi High Court had noted the Ketan Parekh group had indulged in price manipulation of the shares of the company. Senior counsel CA 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 HC had observed 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 2 directors on board of the company for a period of 2 years on the 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 the high court observations, the company had moved the apex court.