September 27, 2019

SAT dismisses ITC's plea against Hotel Leela's assets sale

[ by Legal Era News Network ]

In a major victory for Hotel Leela Venture, the Securities Appellate Tribunal (SAT) rejected ITC's appeal challenging the sale of the hotel's assets.

Cigarette-to-hospitality conglomerate ITC, which holds 7.92 per cent stake in Hotel Leela Venture, had moved the SAT after the Securities and Exchange Board of India (SEBI) rejected its plea that the sale of Hotel Leela Venture's assets to Brookfield Asset Management should not be allowed because of related party transactions.

The securities market regulator had allowed JM Financial Asset Reconstruction Company Ltd, which owns 26 per cent in Leela, to vote on the deal.

The SAT also vacated an earlier stay order whereby it had directed Leela not to declare the postal ballot results till the matter was pending before the tribunal.

Further, it rejected ITC's plea to suspend the tribunal's order for two weeks to allow the conglomerate to appeal before the Supreme Court.

Hotel Leela Venture had in March announced that it was selling four of its hotel properties along with a land parcel to Brookfield. The deal, however, hit a hurdle after the ITC and the Life Insurance Corporation of India who are the minority stakeholders in Hotel Leela Ventures, approached the SEBI alleging that JM Financial Asset Reconstruction Company was a related party and could not vote on the board resolution approving the deal.

Related Post

latest News

  • Registrar of Trade Marks is duty bound to furnish grounds for refusal under Section 18(5) of the Trade Marks Act: Delhi HC

    The Delhi High Court ruled that the Registrar of Trade Marks is duty bound to furnish grounds for refusal under Section 18(5) of the Trade Marks Act, ...

    Read More
  • Coronavirus Lockdown: Validity of expired driving licenses extended till June 30, 2020

    In order to ensure smooth plying of vehicles carrying essential commodities during the ongoing lockdown period, the Transport Ministry has extended th...

    Read More
  • An appeal under Sec. 18 of SARFAESI Act cannot be entertained by the DRAT without pre-deposit of 50% of amount due: SC

    A Bench of Justices Deepak Gupta and Aniruddha Bose held that the High Court cannot give directions which are contrary to law.

    Read More