Case Note & Summary
The suit was filed by shareholders of Spice Jet Ltd, a domestic airline company formerly known as Modi Luft, which had undergone several ownership changes and financial restructuring. The plaintiffs, Kesha Appliances Pvt. Ltd. and others, challenged the preferential allotment of 8,10,77,500 cumulative redeemable convertible preference shares (CRPS) made by defendant no.7 (Spice Jet Ltd) to defendant no.1 (Royal Holdings Services Ltd.) in October 2000. They alleged that the special resolution passed on 27.8.1999 under Section 81(1)(a) of the Companies Act, 1956 was invalid because after the controlling interest in defendant no.1 was transferred from Ajmal Khan to the Kansagra Brothers through overseas corporate bodies, a fresh resolution was required and the exemption under SEBI Takeover Regulations was no longer available. The plaintiffs further challenged the subsequent sale of a portion of those shares by defendant no.1 to defendants 2 to 6, and various further allotments of convertible warrants, equity shares, and debentures made in 2004-2005 to defendants 8 to 12. The suit sought declarations that these transactions were illegal, null and void, and prayed for rectification of the register of members. The matter came up before the Bombay High Court on two Notices of Motion for interim reliefs. The available text from the judgment only narrates the factual background and the prayers sought by the plaintiffs; it does not include any submissions, analysis, or decision by the court.
Issue of Consideration
NOTICE OF MOTION NO. 2486 OF 2005
