HC dismisses Chhabria's appeal in Herbertsons case

MUMBAI, SEPT. 28. The Mumbai High Court today held that acquisition of 21 per cent shares in the UB group-managed Herbertsons by the industrialist, Mr. Kishore Chhabria, in concert with his uncle, Mr. M. D. Chhabria, through their own private firms, was void and in breach of Securities and Exchange Board of India regulations.

Dismissing an appeal filed by Mr. Kishore Chhabria, the Chief Justice Mr. B. P. Singh, and Mr. Justice S. Radhakrishnan said they were upholding the earlier judgement of Mr. Justice Hemant Gokhale who had held that the impunged acquisition was void.

The court, however, stayed its order until December 31 to enable Mr. Chhabria move the Supreme Court.

Mr. Kishore Chhabria is already holding 27.2 per cent shares in Herbertsons. He managed to acquire 21 per cent more from the market and this acquisition became the bone of controversy.

The UB group Chairman, Mr. Vijay Mallya, told reporters, ``I wish to go on record to say that notwithstanding legal success I am always interested in an amicable settlement with Mr. Kishore Chhabria.''

He said, ``I am ready to settle with him on reasonable terms. So far, the understanding of what is reasonable between him and me differ. I have already given him various options and I am ready to pay him premium over and above the price he had paid to acquire the shares of Herbetsons from the market.''

The inquiry, initiated by SEBI into the acquisition of shares in Herbertsons, is over. The final hearing concluded six weeks ago. ``I hope SEBI will take into account the findings of the high court,'' Mr. Mallya said.

- PTI

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