HC Dismisses GSL Plea On Shriram Pistons AGM

New Delhi, June 29: | Updated: Jun 30 2002, 05:30am hrs
The Delhi High Court (HC) has dismissed the urgent application moved by General Sales Ltd (GSL) seeking to stay the annual general meeting (AGM) of Shriram Pistons & Rings Ltd slated for July 6 on the ground that it is beyond the ambit of the main petition.

Counsel Shanti Bhushan, appearing for Shriram Pistons, submitted that challenging the AGM was beyond the ambit of the main petition as well as the appeal and there was no merit in the application.

The main suit filed by GSL was for setting aside the decision of October 4, 2001 of removing Mr NR Dongre from the post of deputy chairman.

It was decided at the meeting of the board of directors of Shriram Pistons held on May 15 that one of the items scheduled for consideration at AGM was the retirement and reappointment of one of the directors, NR Dongre, who is the sole representative of GSL on the board. GSL counsels AS Chandhiok and Suman Bagga prayed before Justice MA Khan to restrain Shriram Pistons from taking up the item on retirement and reappointment of Mr Dongre at AGM.

It is for the shareholders to elect a director, said Mr Bhushan.

As for the allegation by GSL that Shriram Pistons was violating an agreement entered into with them, Mr Bhushan told the court that there was no agreement as such and that the trial court too had said that there was no document showing there was an agreement and even if there was one it was not enforceable.

GSL submitted that Shriram Pistons had arbitrarily removed its nominee representative, Mr Dongre, from the position of deputy chairman on October 4 last year and despite a high court order, had stopped paying him the perks he was entitled to. Shriram Pistons has, however, denied these charges.