SC issues notice to Chhabrias and Mallya on SEBI appeal

NEW DELHI OCT. 17. The Supreme Court today issued notices to Chhabria group Chairman, Kishore Rajaram Chhabria, and UB group Chairman, Vijay Mallya, on two petitions by the Securities and Exchange Board of India (SEBI) challenging a Securities Appellate Tribunal order on the controversy over shares of liquor company Herbertsons. A Bench comprising Chief Justice V. N. Khare and Justice S. B. Sinha asked both Chhabrias and Mallaya to file their response to the two petitions filed by the SEBI challenging the decision of SAT. The Court, while granting them a week's time to respond, posted the matter for further hearing on November 3. There was heated exchange of arguments between the UB group counsel Fali S. Nariman and Chhabrias' counsel Kapil Sibal when the former sought a stay on tendering of the shares by shareholders pursuant to the public offer made by both the rivals. Sibal contended that there was no question of tendering of the shares as it was a competitive bidding where the shareholders would benefit from the rival's intention to buy the shares. Earlier, the Court had issued notice to SEBI on a petition filed by UB group challenging the SAT order asking Chhabrias to make an open offer to shareholders of Herbertsons with October 27, 1994 as reference date to calculate offer price. — PTI