Saturday, May 3, 2008

DHC Restrained Ajanta Manufacturing From Proceeding With Public Issue

New Delhi: The Delhi High Court(DHC)on Friday restrained Ajanta Manufacturing Ltd, manufacturer of Orpat and Oreva brands of watches, from proceeding with its proposed public issue.

Justice B D Ahmed passed the interim order on an application filed by Ajanta India Ltd, an FMCG company, seeking an order to restrain Ajanta Manufacturing Ltd (AML) from going ahead with the issue, for which it has recently filed a draft red herring prospectus (DRHP) with SEBI.

The application filed through advocate Pratibha Maninder Singh also sought a direction to AML to withdraw its DRHP.

Singh contended that AML should change its company's name to one that should not include the word 'Ajanta' as Ajanta India Ltd has an order in its favour from the HC restraining AML from doing so.

Singh said that Ajanta India recently came to know that AML filed a DRHP on April 15, 2008 for a public issue under the tradename/corporate name 'Ajanta Manufacturing Ltd'.

AML had in its DRHP admitted that the use of the tradename/corporate name was under challenge before this court but deliberately chose not to disclose that an interim injunction is effective against it, Ajanta India contended.

The petitioner also said that AML was well-aware of the fact that the 'Ajanta' tradename has been assigned to Ajanta India through a deed of assignment dated September 19, 2002.

AML directors Praveen Patel and Jaisukh Patel are the brothers of Ajanta India's MD A O Patel and were among the signatories to the deed of assignment, the petition stated.

Ajanta India has also moved an application for initiation of contempt proceeding against AML for not obeying the court's interim injunction order and proposing the public issue using the word 'Ajanta' in its name.

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