The move is in response to an application filed with the Mumbai high court by the Vijay Mallya camp, which seeks to freeze the voting rights of Chhabria and his allies, and adjournment of the meeting itself. Mallya will as the chairman, however, preside over the meeting.

Though the court has not adjourned the meeting, it has stated that the AGM will be held as per schedule on December 30. However, Chhabria and his allies will be allowed to cast their mandate if any resolution is voted upon. (Since Chhabria has filed resolutions seeking removal of Mallya and all his nominees on the board, this is bound to happen.)

Chhabrias' votes, along with that of others, will be sealed in covers and deposited with the prothonotary and the senior master of the court. The votes will remain in the covers tillFebruary 9, when the matter will again come up for hearing.

The battle between Chhabria and Mallya is thus now pending before two authorities---the Mumbai high court and Sebi. The securities watchdog is deciding whether the deals concluded by investment companies close to Chhabria in acquiring the 49 per cent-odd shares in Herbertsons were valid or not.

Mallya has complained to the Sebi that the deals were in violation of the takeover code regulations of 1994. Chhabria, in response, has already offered to make an open offer for the remaining shares of the company, "without prejudice to the earlier stand that the deals were valid".

Sebi has also carried out an investigative exercise to determine whether Chhabria's acquisitions were proper or not.

The court will now decide on vital issues such as whether Chhabria has full voting rights at the AGM, and whether such rights also exist for the shares, amounting to a 3.83 per cent stake in the company, for which the Mallya-dominated management has denied himtransfer.