Orbit Electricals, a promoter of Finolex Cables (FCL), has filed an interim application before the Supreme Court, seeking its direction to the scrutiniser to declare the voting results of a resolution. The resolution, which pertains to the re-appointment of Deepak Chhabria as executive chairman, has been kept in abeyance.
In its petition filed this week, Orbit Electricals has also accused the scrutiniser of contempt of court by withholding the outcome of voting results. This constitutes a breach of the apex court’s September 26 order, it argued.
The plea is expected to be heard tomorrow.
Orbit Electricals is requesting the apex court to direct the scrutiniser to declare the voting results by issuing a supplementary scrutiniser report.
FCL has not yet disclosed the voting outcome of resolution no 4 regarding the re-appointment of Deepak Chhabria as a whole-time director designated as executive chairman. The company held its annual general meeting (AGM) last month.
On September 28, the apex court permitted Orbit Electricals to vote at the FCL AGM.
In a regulatory filing on October 2, FCL’s scrutiniser stated that while the Supreme Court has allowed the continuation of the AGM, its order states that any action taken on resolution no 4 “shall be subject to the outcome of the appeal pending before the National Company Law Appellate Tribunal (NCLAT).” Consequently, the results of the voting are “being kept in abeyance.”
Orbit Electricals holds a 30.7% stake in Finolex Cables, while Finolex Industries holds 14.51% in Finolex Cables.
Prakash Chhabria, the son of the late Prahlad Chhabria, is the largest shareholder of Orbit Electricals, and Deepak Chhabria – his cousin – serves as Finolex Cables’ executive chairman. The cousins – Prakash and Deepak – are engaged in a struggle to gain control of Finolex Cables.
Prakash Chhabria owns about 78% of Orbit Electricals, while KP Chhabria faction (father of Deepak Chhabria) along with his children owns about 7%.
Previously, proxy advisory firm InGovern Research Services recommended that shareholders of Finolex Cables “defer” two resolutions, including the reappointment of Deepak Chhabria as executive chairman for a five-year term.
It also called for deferring payment of commissions to non-executive directors. In response, FCL labelled these suggestions as “biased.”
However, another proxy advisory firm, Institutional Investor Advisory Services (IiAS), green-lighted all of the company’s six resolutions.