Satyam shareholder’s plea dismissed

The bid by a shareholder of Satyam Computer Services Pvt. Ltd to reopen the issue of superseding its Board of Directors by the Company Law Board and other consequential actions could not fructify at the initial stage itself.

Justice V. V. S. Rao of the High Court, the designated judge to hear cases arising out of Companies Act, on Tuesday dismissed the petition filed by Manohar Lal Sharma, who said that he was a shareholder. Complaining that the shareholders had not been consulted and taken into confidence when the new board was appointed, the petitioner said that the Company Law Board could not act unilaterally.

The preliminary issue of limitation went against the petitioner and the petition was filed beyond the time limit fixed by the Companies Act, they said. Justice Rao said that the court could not extend the period indicated in the statute and dismissed the petition filed for condoning the delay. As this preliminary petition was dismissed, the main case will not be taken up for hearing and cannot proceed further.