"Delhi High Court Declines to Stay Religare AGM Amidst Burman Family Open Offer Dispute".
*In the case of [Sapna Govind Rao Vs Union of India].* The Delhi High Court on Thursday declined to stay Religare Enterprises Ltd.'s (REL) AGM on February 7 amid a dispute over the Burman family's proposed takeover. Minority shareholder Sapna Govind Rao challenged the deal, alleging mismanagement and undervaluation of REL shares. The Burman family's acquisition offer for REL is set for discussion at the upcoming AGM. Justice Manoj Jain ruled that Rao's arguments did not justify halting the meeting and thus denied interim relief.
1/31/20251 min read
Case Overview
The Delhi High Court addressed a dispute concerning the Annual General Meeting (AGM) of Religare Enterprises Limited (REL) and a proposed open offer by the Burman family, owners of Dabur India. The Burmans intended to acquire an additional 26% stake in REL, aiming to consolidate control over the financial services firm. This move was contested by minority shareholder Sapna Govind Rao, who alleged that the takeover was mishandled and that the offer undervalued REL shares.
Court Analysis
Justice Manoj Jain examined the arguments presented by Sapna Govind Rao, who sought to halt the AGM scheduled for February 7. The court evaluated the sufficiency of the reasons provided to justify an interim stay on the AGM. After careful consideration, the court determined that the arguments did not meet the threshold required to postpone the meeting.
Judgment
The Delhi High Court declined to grant an interim stay on the AGM of Religare Enterprises Limited. Consequently, the AGM proceeded as scheduled on February 7, allowing the Burman family's open offer to be considered by the shareholders.