HC restrains Sterling Group from selling TMB shares

Chennai, June 8 (UNI) Madras High Court today restrained the Sterling Group from alienating its shares in Tamilnadu Merchantile Bank (TMB).

Mr Justice V Ramasubramanian granted the interim injunction and ordered notice, returnable by two weeks, to Sterling Group (SG), on a suit filed by Nadar Mahajana Sangam (NMS) and Nadar Mahajana Share Investors Forum (NMSIF).

In its suit, the NMS and NMSIF submitted the latter entered into an Memorandum of Understanding (MoU) with SG for acquiring the entire legal, equitable and beneficial interest of SG in TMS on April 24, 1999.

As per the terms, the NMSIF had to pay Rs 155 crore in total for acquiring the 67.29 per cent of paid up capital of the TMB.

Though the period was fixed for payment of money in the MOU, the said period has been frequently extended with the consent of both the parties.

The understanding wa agreed, accepted and acted upon by payment of Rs 80.75 crore out of the Rs 155 crore. Irrespective of the completion of the period of balance payment, the SG had been extending the period of payment then and there orally, the NMS and NMSIF added.

The NMS and NMSIF submitted the Sangam has been repeatedly making representation and their offer to pay the remaining amout of Rs 74.25 crore to resume the shares of the bank.

The SG was now misdirected by Mr B Ramachandra Aditan, who was holding the post of director in TMB.

It was given to understand the SG had entered into an agreement in Chennai on March ten, 2006 with Mr Ramachandra Aditan and Mr M G M Maran in their individual capacity.

As per the said agreement executed, the SG representing four different companies holding the shares of the TMB was selling 95,418 shares to Mr Ramachandra Aditan and Mr M G M Maran on a consideration of Rs 166.60 crore payable by the duo.

In fact, a sum of Rs 16.60 crore has been paid and acknowledged by the SG. As per the said agreement, the balance consideration had to be paid and the transfer of shares shall be executed on or before June 30, 2007, the NMS and NMSIF added.

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