New Delhi: The Bombay High Court on Tuesday allowed a plea filed by Invesco Developing Markets Fund against a single-judge order granting interim injunction on holding an extraordinary general meeting (EGM) to remove Punit Goenka, Zee’s Chief Executive Officer (CEO), according to a report in the PTI.
A division bench of Justices S J Kathawalla and Milind Jadhav quashed and set aside the single bench order of October 2021.
In its verdict, the high court said, “The appeal is allowed. The single bench order is quashed and set aside. We have held that the requisition notice (sent by Invesco to Zee) is neither illegal nor incapable of being set aside.”
Appearing for Zee Entertainment Enterprises Limited (Zee), senior counsel Aspi Chinoy sought the court to direct for a status quo to be maintained. The court then directed for the status quo to be maintained for a period of three weeks. The bench, however, said it has quashed all the observations made by the single bench in its order.
Invesco, the largest shareholder of Zee, in September 2021 had put out a requisition to the Zee Board of Directors to hold an EGM on the grounds that it felt the company was not running as smoothly as desired.
The company had sought to remove three directors from the Zee’s Board, including MD and CEO Punit Goenka. When Zee refused to respond to the requisition, Invesco moved an application before the National Company Law Tribunal (NCLT) in Mumbai, which directed Zee to consider the requisition in accordance with law.
Zee then approached the high court, seeking a declaration that the requisition notice by Invesco to hold the EGM was illegal and invalid.
A single bench of Justice Gautam Patel had in October 2021 in an interim order granted an injunction against holding of the EGM.
Later Invesco filed an appeal against the interim injunction order saying that the high court had no jurisdiction to hear the matter and that it ought to have been heard and decided by the NCLT.