Invesco challenges Bombay High Court order in ZEE matter – Economic Times

Invesco, the largest shareholder in (ZEE), has approached a division bench of the Bombay High Court, challenging the injunction order passed by a single-judge bench in a petition filed by the entertainment company against the investor.

The October 26 injunction order had restrained the overseas investor from taking any action or step with regards to its requisition notice to ZEE, including calling or holding an extraordinary general meeting (EGM) for the removal of managing director and chief executive Punit Goenka.

The matter is likely to come up for admission in the court led by Justice SJ Kathawalla on Friday.

As per the Bombay High Court website, Invesco Developing Markets Fund and OFI Global China Fund LLC have filed a common suit on October 28, through law firm Dhruve Liladhar & Co, against ZEE and Goenka.

ZEE had approached the high court on October 1, seeking to declare Invesco’s September 11 requisition notice illegal, invalid and bad in law and sought an injunction.

While granting the injunction, Justice GS Patel observed that he does not suggest that shareholders’ rights are curtailed or abrogated, or that they cannot seek what they now do. “But the manner in which they go about doing it must be legally compliant,” the order said.

The judge said that there was a “fundamental flaw” in Invesco’s demand.

Apart from the removal of Goenka and two other directors — who have already resigned citing personal reasons — Invesco had also sought the induction of six new independent directors on the company’s board.

After the court’s order, the National Company Law Tribunal (NCLT), where Invesco has filed a petition seeking direction to ZEE to convene the EGM, adjourned the matter till November 16.

Invesco’s counsel requested the tribunal on Wednesday to hold the next hearing at a later stage as “probably we will be going for an appeal and if there is any reversal, we can inform the NCLT”.