HC stays decree obtained by SP Arya on Incab

Arindam Sinha

Jamshedpur, May 16: THE Calcutta High Court has stayed its April 19 decree that gave SP Arya, the Kolkata-based businessman who claims to have acquired a majority stake in Incab Industries, virtually full powers over the company’s assets and operations.

The court of Justice DK Seth stayed the decree on May 11 after hearing a case between Leader Universal Holdings Berhad, Malaysia, and Incab Industries Ltd, SP Arya, Incab wholetime director P Ghosh and former Incab finance controller Chow Cho Han (the four defendants) over the properties of Incab.

The decree’s 26-point ‘terms of settlement’ required that the Incab wholetime director took cognisance of Mr Arya “as a co-promoter of Incab Industries until the share to the extent of 58.98 per cent (51.16 per cent of Incab Industries plus 7.82 per cent of Satyam Incab (Holding) Ltd) is transferred in favour of Mr SP Arya.”
The decree also declared that Mr Arya was “at liberty to raise funds by way of charging/ mortgaging/ encumbering the properties of Incab” and to “enjoy privileges/facilities to the extent of 25 per cent more than Mr P Ghosh with effect from September 29, 2000.”

Leader Universal Holdings Berhad, which says the sale of shares to Mr Arya has been declared null and void, had challenged the decree.

After hearing the case on May 11, Justice Seth, in his order, said: “By reason of the said terms of settlement, the shares of Incab Industries Ltd were sought to be dealt with without making the same (Incab) as a party to the proceedings, and the order was obtained.”

“In the circumstances, the operation of the said decree shall remain stayed until further orders,” the order added. Leader Universal was represented by Mr Pratap Chatterjee.

On May 3, the court of Justice Barin Ghosh had vacated the interim stay on the process of effecting a change in Incab management, thus allowing the Board for Industrial & Financial Reconstruction and the State Bank of India, Incab’s operating agency, to open the expressions of interest received for the sick company.u