SCHEME OF ARRANGEMENT Vs. BHARTI MOBINET LIMITED

JUDGEMENT

(1.) This application is filed by the applicant-objector under Rule 6 read with Rule 9 of the Company (Court) Rules, 1959 praying for exercise of the inherent powers of this Court for recalling and setting aside the order dated July 29, 2003 whereby this Court approved and granted sanction to the scheme of arrangement.

(2.) Two-fold grounds have been Advanced by the counsel appearing for the objector-respondent in support of the prayer for recalling and setting aside the said order. The first submission which was advanced was that the petitioner-M/s. Bharti Mobinet Limited, who filed the Company Petition No. 167/2003 connected with C.A. (M) No. 41/2003, did not come to this Court with clean hands and did not disclose all material facts and in fact they perpetrated fraud on this Court and, therefore, this order is liable to be set aside, quashed and recalled. The second submission was that the said petitioner got shares transferred to it and got sanction of the scheme envisaging such transfer from this Court in violation of the order of injunction passed in various proceedings and, therefore, also the said order is required to be recalled.

(3.) I heard the counsel appearing for the parties in respect of the aforesaid contentions raised. In order to appreciate the said contentions it would be necessary to set out herein certain material facts which are disclosed from the pleadings of the parties and on which heavy reliance was placed by the counsel appearing for the parties in support of their contentions.