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SC not to intervene in Parke Davis-Pfizer merger
May 13, 2003 14:42 IST
The merger of Indian subsidiaries of Parke Davis and Pfizer, following global amalgamation of the two pharma giants, is delayed with the Supreme Court refusing to entertain a petition challenging a Bombay high court order staying the merger process.
A Bench comprising Justice R C Lahoti and Justice Ashok Bhan last week refused to interfere with the interim order of the high court of March 13 staying the merger process and dismissed the appeal filed by Parke Davis.
A single judge of the high court had approved the scheme of amalgamation of Parke Davis (India) Ltd into Pfizer Ltd on February 7, 2003.
This order was challenged by a shareholder of Parker Davis (India) Ltd before the division bench of the high court alleging certain statutory irregularities in the amalgamation.
The shareholder, Dinesh Vrajlal Lakhani, had alleged that the requirement under Section 391(2) of the Companies Act providing for majority of members present and voting was not followed.
The division bench, while saying that this contention of Lakhani required examination had stayed the amalgamation process by an interim order.
The bench, while rejecting the vacation of the stay on April 30, had said that it could not permit 'actions contrary to the provision of statute.
It had directed the registry to notify the appeal before the concerned bench immediately after reopening of the court after the summer vacations on June 4, 2003 for the bench to consider taking it up for final hearing.
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