The Company Law Board (CLB) has issued notices to Unitech and its associates on an arbitration plea filed by its foreign partner Telenor with regard to dispute over the rights issue of Uninor.
The CLB has directed real estate company Unitech to give its reply within six weeks. Its telecom joint venture foreign partner Telenor and JV company Unitech Wireless would file rejoinder in four weeks.
The Board has fixed December 12 for the hearing of the main petition filed by Unitech alleging mismanagement by the foreign partner in the joint venture and its associated directors.
Telenor has filed an application in this matter under section 45 of the Arbitration And Conciliation Act. A judicial forum under the said Act refers the matter for arbitration on the request of either of the party.
Counsels representing Telenor submitted that as per their share purchase agreement any dispute is to be amicably solved by arbitration at Singapore International Arbitration Center.
Meanwhile, on the contentious issue of Board meeting regarding rights issue and others, the CLB said that Unitech Wireless can convene EGM or AGM.
However, the CLB further said that Unitech may approach it for appointment of an observer for such meeting and its video-recording.
The CLB member Vimla Yadav said that the Unitech Wireless would have to serve proper notice to its estranged minority share holder (Unitech) for such AGM. The 90-minute proceedings of the CLB today witnessed high drama on the issue of share-holding.
CLB asked Telenor and Unitech Wirless to main status quo regarding their share-holding. This was vehemently opposed by the counsels of both Telenor and Unitech Wirless.
Counsels of Telenor and Unitech Wirless submitted that when the plea of status quo was not even argued, then how can CLB pass an order. They further said that the Punjab and Haryana High Court has already given a go-ahead for the rights issue then how can CLB stay that.
Last week, the CLB has adjourned the Unitech plea against Unitech Wireless and others to October 18 as responding parties pointed out that they must be served at least 48 hours before the hearing started.
Unitech Wireless Board, which operates under Uninor brand name, had decided to go for the right issue to raise up to Rs.8,500 crore. The two are fighting a legal battle over it.
