The Delhi High Court’s recent ruling has sent shockwaves through the corporate world, as Chairperson Rashmi Saluja’s plea to block investors from voting on her re-appointment at Religare Enterprises (REL) has been rejected. This decision paves the way for the Burmans to move forward with their open offer to increase their stake in the company. Justice Purushaindra Kumar Kaurav’s refusal to halt the Annual General Meeting (AGM) clears the path for shareholders to cast their votes on appointing a new director, while the Division Bench, led by Chief Justice Devendra Kumar Upadhyaya, has allowed the Burman’s existing open offer to proceed, despite a competing offer from Danny Gaekwad.
In the courtroom, Senior Counsel Sandeep Sethi, representing Saluja, argued passionately in favor of the contractual agreement that entitles her to remain a director until 2028. He emphasized that deviating from the agreed-upon process for retirement and re-appointment not only violates contractual obligations but also undermines the fundamental principles of corporate governance. Sethi drove home the point that a director’s role is not merely a transactional position to be bought with money but a position of trust and honor that must be upheld as per the terms of the contract. Despite Sethi’s compelling legal arguments, the Court chose not to grant the injunction sought at this juncture.
### A Closer Look at the Corporate Dispute
This recent ruling by the Delhi High Court marks a pivotal moment in the larger Burman-Saluja-Religare dispute that has captivated the attention of the business world for months. Alongside Saluja’s case, minority shareholder Sapna Rao has also taken legal action by filing a separate lawsuit with the court, questioning the overall governance structure at REL and urging authorities to consider Danny Gaekwad’s counter open offer. Gaekwad, in turn, has filed an intervention application, leading the Division Bench to declare that the Securities and Exchange Board of India (SEBI) will review Gaekwad’s offer “in accordance with law,” permitting the Burmans’ open offer to proceed pending the final appeal outcome.
The intricate legal battles and power struggles unfolding within REL have underscored the high stakes involved in corporate governance and decision-making processes. As the drama continues to unfold in the courtroom, the fate of Religare Enterprises hangs in the balance, with each ruling shaping the future trajectory of the company and its leadership. Stay tuned for further updates on this gripping saga as it continues to evolve and unravel in the halls of justice.
