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Stock Ideas Top Headlines SC seeks Birla’s response on Idea
Stock Ideas Top Headlines SC seeks Birla’s response on Idea 
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| SC seeks Birla’s response on Idea |
| Monday, 13 August 2007 | ||||||||
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The Supreme Court has asked the A.V. Birla group to file its reply to a petition from Tata Industries seeking arbitration to resolve a dispute related to termination of their joint venture Idea Cellular. Tata, which served two termination notices to its partner before selling its over 48 per cent stake in Idea to Birla group firm Grasim, has sought arbitration on the ground that the Birlas violated the share holder agreement (SHA). However, the A.V. Birla Group has rejected the call for arbitration. If the arbitration is settled in the Tata group’s favor, it will have the right t o buy out the Birlas’ stake in the Idea. Tata Group, which held 48.14 per sent stake in Idea. Tata Group, which held 48.14 per cent stake Idea through Tata industries and its subsidiary Apex Investments(Mauritius) Holding, had sold it to Grasim for Rs 4,406 crore last year even while the termination notice were pending. A bench headed by justice V.S. Sirpurkar, while issuing notice to Grasim on July 9, fixed August 20 as the next date of hearing.
Alleging breach of SHA by the Birlas, the Tatas moved the apex court seeking to appoint a nominee arbitrator on behalf of Grasim as a latter has refused to appoint one. The Tatas had appointed retired Supreme Court judge Arun Kumar as its arbitrator. “The resolution of the disputes and acceptance of the offer notice by the respondent are two distinct proceedings and cannot affect the continuance of the other,” TIL stated adding that the right to seek reparation against Birlas was created after latter breached the provisions of the SHA.
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