ITC asks to be heard first if Hotel Leelaventure appeals for relief

ITC has filed a petition in the Bombay High Court, asking to be heard first should Hotel Leelaventure approach it for relief in the case related to the deal with Brookfield Asset Management that’s in the National Company Law Tribunal.

The cigarettes-to-hotels group, which is a minority shareholder in Leelaventure, filed a caveat plea in the court on April 25 through its law firm Bharucha & Partners, people familiar with the matter told ET.

The caveat petition was filed after Leelaventure said the market regulator had barred it from selling its four hotels and other assets to Canadian investment fund Brookfield until further directions. The petition will give ITC a chance to be heard in the matter, independent lawyers said.

“If Hotel Leelaventure or any company controlled by its promoters wishes to approach Bombay High Court to seek any relief against ITC, they will have to give 48 hours advance notice to the Kolkata-based company to ensure the caveator is heard before any order is passed,” said Chandubhai Mehta, managing partner at law firm Dhruve Liladhar & Co.

“The caveat petition has been filed to avoid any ex parte order in case Leelaventure approaches the Bombay High Court,” another lawyer said.

An ITC spokesperson said the company would not like to comment because the matter is sub judice. Leelaventure did not respond to an email seeking comment till the time of going to press.

ITC has claimed that the deal between Leelaventure and Brookfield is against the interests of the company and its shareholders.

The NCLT hearing in the case has been posted for June 18. ITC currently holds a 7.92% stake in Leelaventure, short of the 10% needed to file a petition alleging oppression and mismanagement, and needs to prove its eligibility to be heard.

Almost 86% of Leelaventure’s shareholders approved the Brookfield deal in a postal vote, the company said in a notice on Friday.

While the promoters backed the deal, 74.87% of public institutional investors and 74.9% of non-institutional public investors who voted also endorsed the move. It is not known how LIC and ITC voted. Voting through postal ballot began on March 26 and ended on April 24.

Source:-https://economictimes.indiatimes.com/industry/services/hotels-/-restaurants/itc-asks-to-be-heard-first-if-hotel-leelaventure-appeals-for-relief/articleshow/69106133.cms