BSE disclosure filed by Jagran Prakashan over family dispute

Jagran Prakashan has submitted a disclosure statement in the ongoing case at NCLT. The matter, titled "Mahendra Mohan Gupta and Devendra Mohan Gupta and C.P", involves the pursuit of immediate reliefs aimed at securing interim management within the company.

The company notified the BSE that an application concerning the same matter had been submitted on September 25.

The company has sought the following interim reliefs in the said application:

1. Pass appropriate and necessary directions appointing a fit and proper person as an Administrator, without supersession of the board, to oversee, regulate, and manage the affairs of the Company and to file a monthly report before the Tribunal with a copy to JPL.

2. Permit the Company's Board to identify a qualified and independent professional in the capacity of a Chief Executive Officer, or by whatever name called, to assist and work under the supervision of the Administrator so appointed, within a reasonable period with the Tribunal's approval.

3. Pass appropriate and necessary directions extending the term of the petitioner as the MD of the Company till such Chief Executive Officer is identified, to work under the supervision of the Administrator appointed by the Tribunal.

Following this, NCLT, Allahabad Bench, Prayagraj, in an order dated September 27, 2023, said that an application has been filed by the applicant for appointment of an Administrator without supersession of the Board and to permit the applicant company’s board to identify a qualified and independent professional in the capacity of a Chief Executive Officer, with further prayer that the term of petitioner as the MD of the applicant company to continue till such Chief Executive Officer is identified and appointed as such.

Let notices be issued to the non-applicant/respondents in the present application. Counsels appearing on behalf of non-applicant/respondents accept notice and therefore waive service. Let the reply/affidavit be filed by the respective respondents within one week by serving an advance copy to the counsel representing the opposite side.

“It is pointed out that as per the Regulation 26A of the Securities and Exchange Board of India, Regulation, 2015, a listed company is required to fill any vacancy in the office of Managing Director at the earliest, and not later than three months from the date of such vacancy,” NCLT said in the order.

Since the present vacancy of MD is going to occur on September, 30, 2023, as stated by the senior counsel representing the applicant, therefore the appointment in any case has to take place on or before three months in terms of the aforesaid Regulation 26A of the SEBI Regulation, 2015.

“Counsels representing the parties are in agreement that there has to be a definite timeline in order to ensure that the appointment of the Managing Director takes place promptly, so that the company does not suffer in the absence of the Managing Director. Be that as it may, let the reply as stated above be filed,” NCLT said.

“It is also directed that both the parties would come out with a definite timeline in order to ensure that the appointment of the Managing Director takes place within a time bound manner, so that the vacancy on the post of the Managing Director does not continue indefinitely,” it added.

Let the needful be done within the aforesaid stipulated period of one week. The matter comes up for hearing on October 4, 2023, when the main petition along with other applications are already listed, NCLT stated.

After September 30, 2023, as a special arrangement, any major decisions would be taken collectively by the Board. This arrangement is to continue only till the next date of hearing i.e. till October 4, 2023, in accordance with the provisions of the Articles of Association as well as in accordance with the provision of Companies Act.

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