The Delhi high court has issued notices to the Centre, market regulator Securities and Exchange Board of India and real estate firm DLF on an application challenging the company's decision to allot debentures to minority shareholders early this month.
Justice Anil Kumar issued notices on an application filed by an NGO -- Society for Consumers' and Investors' Protection -- which had sought to restrain DLF from executing the resolutions allotting shares and debentures to minority shareholders till the matter is disposed off by the court.
DLF in its extraordinary general meeting on November 14 had decided to issue convertible debentures on right basis, convert equity shares, issue and allot bonus shares to minority shareholders.
On October 9, the high court sought responses on a petition filed by SCIP from the Centre, DLF and Sebi. But the company has not submitted a response yet, which was to be filed within four weeks from the date of issuance of notice.
SCIP, through its advocate B R Sachdeva, has now contended that since the matter was pending before the court, the company had no right to issue shares or debentures without the prior permission of the court.
The NGO argued the company's decision to restore benefits to the deprived shareholders was aimed at bypassing the statutory laws and to overshadow its unfair practices.
The applicant further said that there was no provision in Companies Act, 1956 which could support the revival process carried out by modifying the resolution earlier passed by the company in respect of the securities in question.
Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Discussion Group.
© 2026