2006 (12) TMI 230 - SCH - Companies Law

Supreme Court ruling: Timely public offer announcement & payment, bank guarantee maintenance

The Supreme Court of India directed in Civil Appeal No. 7304 of 2003 that a public announcement of an offer must be made within 45 days, and the offer ... Issues raised in this Appeal are partly covered by the Judgment of this Court in the case of Clariant International Ltd. v. SEBI [2004 (8) TMI 390 - SUPREME COURT OF INDIA] wherein following directions are issued :— The Appellants will make the public announcement of the offer within a period of 45 days from the date of this Order having regard to the referral date as 28-4-1999. The Appellants will pay the offer price with interest at the rate of 10 per cent per annum with effect from 27-8-1999 till the date of payment to all those who were shareholders on 27-8-1999 and continue to be shareholders of the target Company on the closure date of the public offer. The Bank guarantee furnished under Order dated 17th November, 2003 in favour of the respondents shall be kept alive till conclusion of the purchase pursuant to the public announcement and offer. The Supreme Court of India issued directions in Civil Appeal No. 7304 of 2003 related to making a public announcement of an offer within 45 days and paying the offer price with interest. The Bank guarantee should be kept alive until the purchase is concluded. Civil Appeal No. 8540 of 2003 was disposed of accordingly. No costs were awarded in either appeal.