The plea by Religare Enterprises (REL) Chairperson Rashmi Saluja to block investors from voting on her re-appointment has been rejected by the Delhi High Court. The court has also allowed the Burmans to proceed with their open offer to increase stake in the company.
Justice Purushaindra Kumar Kaurav has declined to stall the AGM, giving shareholders the green light to vote on appointing a new director. Meanwhile, the Division Bench, led by Chief Justice Devendra Kumar Upadhyaya, has ruled that the Burmans’ existing open offer can move forward despite Danny Gaekwad’s competing open offer.
Senior Counsel Sandeep Sethi, representing Saluja, highlighted the contractual agreement that allows her to remain as director until 2028. He argued that any deviation from the agreed process for retirement and re-appointment undermines not only contractual obligations but also corporate governance principles.
Sethi emphasized that the director’s role is one of trust and honor, not merely a commodity to be compensated with money. Despite the detailed legal reasoning presented by Sethi, the Court has decided not to grant the injunction sought at this stage.
The court’s decision is a significant development in the ongoing Burman-Saluja-Religare dispute that has captured attention in the corporate world. In addition to Saluja’s case, minority shareholder Sapna Rao has filed a separate case questioning the governance framework at REL and seeking consideration of Danny Gaekwad’s counter open offer.
In a separate development, the Division Bench has ruled that SEBI will consider Gaekwad’s offer “in accordance with law,” allowing the open offer by the Burmans to proceed, subject to the final outcome of the appeal.
The corporate dispute involving Religare continues to unfold, with various parties presenting their arguments and seeking legal recourse in the Delhi High Court. The decision by the court sets the stage for further developments in this high-profile case.
