AP High Court to hear plea on CLB action

By S A Ishaqui

Hyderabad,July 27: The solicitor general, Mr Gopal Subramaniam, has rushed from Delhi to appear in the hearing of a petition filed in the AP High Court against the order of the Company Law Board to supersede the board of scam-tainted Satyam Computers.
It is said that the Prime Minister’s Office had expressly instructed Mr Subramaniam to argue against the petition which will be taken up on Tuesday.
The petition was filed by Mr Manohar Lal Sharma, an advocate of the Supreme Court, challenging the order issued on February 19, 2009, facilitating the ministry of corporate affairs to suspend the existing board and to appoint a new board of directors. Based on the Company Law Board’s direction, the Centre had appointed new directors.
Mr Sharma had earlier filed a petition in the Delhi High Court and it was dismissed on the point of jurisdiction.
According to the petitioner, his aim in filing the petition was to decide key legal issues in the interest of law and justice.
His posers are whether Sections 397 and 398 can be applied without concluding Section 388 (b) of the Companies Act and whether a disputed letter (the confession of ex-Satyam boss Ramalinga Raju) can be made the basis for proceedings under Section 397 and 398 of the Act.
Mr Sharma also wants the court to clarify whether the power to amend a law belongs Parliament or to the Company Law Board and whether it can overstep provisions of Section 81 (1A) as well as Section 94 of the Act against the interest of the investor.
The High Court issued a notice to the ministry of corporate affairs which informed the PMO about the case.
The PMO in turn instructed the solicitor- general to personally appear.