L.Narasimha Reddy, J. - (1.) The petitioner filed this writ petition seeking a writ of mandamus declaring the transfer of Rs. 9.76 lakhs shares in Fenoplast Ltd. the 3rd respondent herein 'the Company' in favour of respondents 4 to 8 ('Haridass family'), as illegal and violative of Regulation 10 of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 ('the Regulations') and seeks a consequential direction for restoration of those shares to the petitioner's family.
(2.) According to the petitioner, the company was floated in the year 1975 by three families, known as, Katta family, Haridass family and Gada family. The shareholding of these families was at 28, 25 and 47 per cent, respectively. The petitioner claims to belong to the Katta family, whereas respondents 4 to 8 are said to be from Haridass family. It is alleged that, as time passed by, the Haridass family started asserting and dominating over the other two families and ultimately the petitioner's family was left with no alternative except to leave the company. That resulted in a Memorandum of Understanding 'MOU' dated 27-9-1996 between the petitioner's family and the Haridass family.
(3.) The MOU provided for transfer of the shares of the petitioner and his family in favour of Haridass family for consideration stipulated therein. It is also stated that on account of certain controversies relating to working out of the MOU, the petitioner approached the CLB (the Principal Bench, at New Delhi), by filing C.P. No. 78 of 2000.;