The tribunal’s decision, delivered on Friday, is based on provisions outlined in the Articles of Association. It determined that Chhabria held the position of authorised representative (AR) for Orbit Electricals on the board of Finolex Cables, and he remains in this capacity until the amendment of the relevant article.
“Deepak Chhabria may continue as chairman of Finolex Cables on account of the Articles of Association as they existed prior to EGM dated 3.5.2019, Trust Deed and the MoU entered into between FCL and FIL,” said the NCLAT order.
According to the order, the amendment and deletion of Articles 59 and 60 would not only tilt the balance of convenience against Chhabria, but may also cause irreparable loss to him upon his removal as chairman of Finolex Cables.
On Friday, a Supreme Court bench led by Chief Justice DY Chandrachud ordered scrutiniser VM Birajdar to disclose the results of the vote on the resolution during the AGM held on September 29. The resolution was pertaining to the reappointment of Chhabria as a wholetime director designated as executive chairman. The Supreme Court also said NCLAT can pronounce the judgement later.
