CLB stays Hormusji Gharda’s stake sale

CLB stays Hormusji Gharda’s stake sale

Mumbai: The Company Law Board (CLB) has stayed the key promoter and current chairman and managing director of Gharda Chemicals Ltd, Keki Hormusji Gharda, from selling his 65% stake. The CLB ruling last week was based on a petition filed by Gharda’s sister and her family, who hold 30% of the company, the second largest stake.

By virtue of the CLB order, Gharda’s plan to use the proceeds for a trust promoting research has been delayed for now.

The plan was contested by Gharda’s sister Jer Rutton Kavasmaneck and her family on the grounds that selling a majority stake without their consent would violate the pre-emption rights granted them.

The CLB has restrained Gharda from “transferring or alienating" the shares as well as immovable assets of the company without its permission until further orders.

Keki Gharda on Tuesday confirmed that he had received a copy of the interim order, but declined to comment on the matter, or elaborate on what he would do next. "I will consult my legal advisors," he said.

Darius Rutton Kavasmaneck, the main petitioner and a nephew of Keki Gharda, said the family was exercising a pre-emptive right that mandates both parties to offer to sell their stake to each other first.