Order says issues raised by petitioner have failed and are therefore not entitled to any reliefs
The Company Law Board (CLB) has dismissed a petition by JC Mansukhani, former vice-chairman and managing director of Man Industries (India) against the company and his brother and chairman RC Mansukhani alleging mismanagement and oppression, siphoning off company funds and pleading for reliefs.
The dispute which has been dragging on for some months was precipitated further in May this year, when the company board led by Ramesh Chandra Mansukhani, withdrew the powers of his younger brother Jagdish Chandra Mansukhani. JC Mansukhani retaliated by complaining to police, alleging misappropriation and diversion of funds.
He alleged that the board meeting that took the decision to withdraw his powers was called at short notice and without any agenda and that he stayed away from the meeting as his queries were rejected. JC Mansukhani said the action taken by the company against him made him suspect that there may have been irregularities.
In an order on Monday, the CLB ruled that JC Mansukhani was not entitled for any relief as the company was not a glorified partnership. It said that the petitioners “cannot allege that they are a minority group and the contention of the petitioners that the company is a glorified partnership and a family-run company cannot be accepted”.
The CLB also dismissed the allegations of siphoning off funds, terming the allegations as baseless. “Since all issues are answered against the petitioners, the petitioners are not entitled to any reliefs as prayed for. The petition is miserably failed and liable to be dismissed,” the CLB said in its order.
The brothers are co-promoters of the Rs1,800 crore Man Industries, which manufacturers pipes, and caters to the oil & gas sector and public sector corporations. The differences have persisted for some time now, but various efforts to mediate have failed.
In May, RC Mansukhani was quoted by a newspaper as saying that the board had decided to withdraw the powers enjoyed by his brother due to several acts committed by him which went against the company. He admitted the ownership issues were being discussed for over two years, but since his brother had decided to take the matter the full distance, “there is no way we can work together now”.
The court suggested to SEBI to give MCX-SX “a fresh chance with an open mind”, saying that for “small reasons, institutions should not be closed down as markets needs competition”
Mumbai: The Bombay High Court today asked market regulator Securities and Exchange Board of India (SEBI) and MCX Stock Exchange (MCX-SX) to resolve differences over the equity trading issue and come up with an amicable solution by 30th September, reports PTI.
MCX-SX had moved the court last September against a SEBI order that rejected its application to launch equity trading.
The court also suggested to SEBI to give MCX-SX “a fresh chance with an open mind”, saying that for “small reasons, institutions should not be closed down as markets needs competition”.
Justice DY Chandrachud advised the warring parties to come back to the court on 30th September with a workable solution through undertakings and assurances.
The Judge also advised SEBI to consider withdrawing the show-cause notice it had slapped on MCX-SX as most of the issues in the order have been resolved.
Last year, SEBI denied permission to MCX-SX to begin equity trading as it was apprehensive of the shareholding pattern in the private exchange promoted by Jignesh Shah-led Financial Technologies.
MCX spokesperson declined to comment on the court’s direction, saying the issue is still part of the court proceedings.
Financial Technologies-promoted MCX-SX is currently the number one exchange in the currency derivatives market.
The other two players are the National Stock Exchange (NSE) and United Stock Exchange (USE).
MCX-SX started operations in the currency derivatives in 2008 and SEBI on Wednesday gave a conditional one year extension to the privately-held exchange for trading in currency futures segment.
Indiabulls Housing Finance head explains that increasing the EMI is better than extending the loan tenor
The corporate sector had hoped otherwise, but the Reserve Bank of India (RBI) today hiked key interest rates by a further 25 basis points. This will likely make home and automobile loans still more expensive and realtors believe that property prices will go up further. In this situation, Sachin Chaudhary, business head of Indiabulls Housing Finance, has advised borrowers not to go for fixed-rate loans or to extend loan tenors.
"In a high rate scenario, try and increase your EMI if your pocket allows. Do not go for fixed rate loans, because the rates are expected to soften," Mr Chaudhary said. He also argued that it was preferable to keep the tenor constant than to pay a fixed amount of EMI. In the latter case, the interest increases significantly by the time the loan is repaid. "Don't increase the loan tenor," he said.
The Indiabulls Housing Finance head also explained that in the case of a fixed tenor the effective rate is much lower, because deductions on home loans result in tax benefits. He demonstrated this through an example: When the tenor is fixed for 180 months, and if rates are hiked by 0.25% with each successive EMI payment, even though the EMI amount on every Rs1 lakh increases, the overall increase in rate of interest after six successive hikes is 9%. However, when the EMI is fixed and the tenor keeps on increasing by even one month, after six extensions, the interest rate is increased by 22%.
Mr Chaudhary advised that in the present situation, it was better to renegotiate the rate of interest rather than switch to another financial institution. He also said that prepayment was the best option, and a part prepayment could reduce the loan tenor up to 50%.
Most banks offer loans that have tenets of 'teaser loans', that is a fixed rate for the first few years and then at par with floating rate loans. Experts think that the interest rate hikes are nearing their peak, and a lock in for 3-5 years is not advisable. "In most cases, the fixed-floating hybrid loans favour the lender and not the buyer," said an analyst.
The RBI today announced a hike in interest rates, the 12th time it has increased rates since March 2010. Repo rate now stands at 8.25% and the reverse repo rate at 7.25%.
Indian Overseas Bank chairman and managing director M Narendra said, "I believe banks will wait till the month-end before taking a call on an interest rate hike." Bankers are of the opinion that the rate increase will be passed on to customers sooner than later.