Cupid Share Dispute With Outgoing Promoters Unlikely To Impact Financials, Operations
The company said that it views the dispute as a private matter pertaining to share allocations and is confident that the temporary injunction's stay will mitigate any potential adverse effects.
Cupid Ltd. believes the ongoing legal dispute regarding the shares held by its outgoing promoters will not have any substantial impact on the company's financials, operations, or overall business activities.
In an exchange filing, the company stated that it views the dispute as a private matter pertaining to share allocations and is confident that the temporary injunction's stay will mitigate any potential adverse effects.
The legal issues started when the District Judge in Alwar issued an interim order on Dec. 8, 2023. This order instructed Cupid Limited and its outgoing promoters to keep things as they were with certain shares involved in the dispute. On Dec. 15, 2023, the Additional District Judge-3 extended this order.
The situation escalated on March 30, 2024, when the Hon'ble Upper District Judge No. 1 in Alwar issued a temporary injunction. This injunction prohibited any alterations to the company’s financial structure unless a bank guarantee was provided. The guarantee required from both the outgoing promoters and Cupid Limited was set at the sale value of 59,81,036 shares, priced at Rs. 250 per share.
In response to these legal hurdles, Cupid Limited and the outgoing promoters sought relief from the Supreme Court of India. On July 26, 2024, the Supreme Court stayed the order issued by the Upper District Judge. This stay was formally communicated to Cupid Limited on July 30, 2024, following the company’s disclosure of the development.
The sequence of judicial orders began with the District Judge’s ruling on December 11, 2023, followed by the extension from the Additional District Judge on December 16, 2023. The Upper District Judge’s injunction was received by the company on April 2, 2024, and the Supreme Court’s stay order was received later in July.
The legal dispute involves several parties, including Cupid Limited, its outgoing promoters Om Prakash Garg, Veena Garg, Vikas Lifecare Ltd., Tanmay Kedia, and Sharad Premprakash Rathi. The case has seen action across multiple courts, including the District Judge, Additional District Judge-3, the Upper District Judge No. 1 in Alwar, and the Supreme Court of India.
