High Court asks Invesco-OFI to reply on Zee plea challenging EGM demand

The Bombay High Court has directed Invesco Developing Markets Fund and OFI Global China Fund – largest investors of Zee Entertain Enterprises (ZEE) to file its reply to the entertainment company’s plea challenging their requisition for calling of an extraordinary general meeting (EGM).

Justice Gautam Patel, on Wednesday, directed Invesco-OFI to file their reply by October 20 and kept the matter for hearing on October 21, a day before the National Company Law Tribunal (NCLT) is slated to hear the investors’ plea.

ZEE had filed a suit seeking that the HC declare the requisition notice sent by Invesco and OFI Global China Fund be declared as is “illegal and invalid”.

The court questioned OFI’s counsel Janak Dwarkadas as to why they had moved the NCLT before the expiration of 21 days. As per the mandate, the Board of Directors (BoD) has to decided within 21 days of receiving requisition for calling an AGM and the same has to then be called within 45 days thereafter.

Dwarkadas said that their plea is pending before the NCLT and before filing its reply, the applicant (ZEE) approached the National Company Law Appellate Tribunal (NCLAT) and the HC.

“It is my statutory right to call for an EGM,” said Dwarkadas adding that they (ZEE) could not question the validity of the requisition.

Justice Patel asked senior counsel Gopal SUbramanium, appearing for ZEE, “If the matter is before the NCLT then why should I hear the matter today? What if NCLT refuses Mr Dwarkadas’ application….”

Subramanium said that the suit questions the validity of the requisition of an EGM.

“Suit questions the validity of the requisition of calling of an EGM. The question is whether the NCLT can decide on this?” said Subramanium.