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The Company Law Board (CLB) has declined to grant any interim relief to the Birlas in the cases they filed against Mr H.V. Lodha and some directors of the Birla Corporation.
The CLB Chairman, Mr Justice D.R. Deshmukh, in his order, said, “It is becoming clearer as broad day light that a one-point programme of removal of H.V. Lodha as the Chairman and Director of the company (Birla Corporation) is being followed by the petitioners (the Birlas)”.
“Prima facie the petition appears to be motivated and the petitioners seem to be working for personal gains and not for protecting the interest of the company,” the CLB order added. Though the Birlas complained of oppression and mismanagement in Birla Corporation, the CLB noted that they kept on purchasing shares in the company.
The CLB observed that “no one would buy shares of a company in which shareholders were oppressed, or where the funds of the company were siphoned or the company was mismanaged”.
The CLB said that in a company, which is profit-making and professionally managed, no public interest would be served in granting such interim relief claim.
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