9911796707
TMI Blog2002 (5) TMI 803X X X X Extracts X X X X X X X X Extracts X X X X ..... es. The litigation landed them in Supreme Court where on 7-1-1998 following interim order on the application of Mr. M.K. Modi was passed which reads as under :- "For a period of eight weeks from today, neither Mr. K.K. Modi nor Mr. M.K. Modi will acquire directly or indirectly any further shares of Modipon Limited nor take any steps that would in any way directly or indirectly destabilise the control and management of the Fibre Division of Modipon Limited by Mr. K.K. Modi and of the Chemical Division of Modipon Limited by Mr. M.K. Modi. Liberty to apply for variations if circumstances change." 2. The appeal against the said order was finally decided by the Supreme Court on 4-2-1998 wherein aforesaid interim order of 7-1-1998 was ordered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on by Mr. K.K. Modi and Chemical division by Mr. M.K. Modi has remained intact. 6. A piquant situation has cropped up by a public notice issued by UPSIDC on 25-4-2002 inviting offers for the sale of its equity shares which constitutes 16.61 per cent of the total equity of the company. What is irking the plaintiff is that through this notice offer has to be made by a single party for the entire block of shares owned by UPSIDC and since none of the parties owns 16.61 per cent there is every likelihood of third party bidding for it. It is contended that if a third party comes to own 16.61 per cent shares it will destabilise the control of both the parties on Modipon Ltd. and practically will oust both of them from the company as the third par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urchase of shares of Modipon Ltd. issued by any third party. As a result shares held by non controlling parties will be acquired by third party and such a party would be in commanding and controlling position of company. 10. The problem against variation of said order is that of defendant No. 2. Defendant No. 2 is short of funds and has no money to purchase. It is also facing liabilities to be discharged in the form of debts towards financial institutions and banks and has financial constraints and crunch. 11. It is in view of this position of defendant No. 2 that plaintiff has submitted written offer to the effect that any shares that would be acquired either by Mr. K.K. Modi or Mr. M.K. Modi pursuant to this Court's order would be share ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olved from the terms of the MOU but also will have exclusive control and management of the company resulting in destablising the status quo, the permission to the plaintiff to purchase shares of UPSIDC is granted subject to the condition that payment will be made by the plaintiff towards 50 per cent shares of UPSIDC on behalf of defendant No. 2 and this payment shall only be confined to making purchase of shares of UPSIDC and will not be deemed as payment made to the defendant No. 2 for discharging his liabilities to the banks and financial institutions. This order is being made in order to save the company from going into the hands of strangers and to maintain the order of the Supreme Court that control and management of Chemical Division ..... X X X X Extracts X X X X X X X X Extracts X X X X
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