BIJAPUR: Shivanand Patil, an MLA, who is one of the directors of Jnanayogi Shivkumar Sugars Pvt. Ltd., has threatened to initiate contempt of court proceedings against factory chairman Basanagouda R. Patil Yatnal, an MP, for allegedly misleading the public on the proceedings of Additional Principal Bench (Chennai) of the Company Law Board, a quasi-judicial body formed to settle company disputes.

Also, he plans to make respondents in the case the newspapers and electronic media that carried the statement of Mr. Yatnal.

Mr. Patil released to the media here a copy of the interim order issued by the Bench to substantiate his claim that Mr. Yatnal misrepresented the fact. It may be recalled that at a press conference here on Wednesday, Mr. Yatnal had claimed that the Bench refused to entertain the demands of rival group headed by Mr. Patil.

The rival faction wanted the Bench to institute commission of inquiry into alleged irregularities, and restrain management from discharging its duty till the final order. It also pleaded the Bench to direct the management to reverse its decision removing two directors from the Board of Directors. It also questioned the management's decision allotting shares to 209 members instead of only 196.

As Mr. Yatnal had stated, none of these demands was obliged by the Bench.

However, there is no mention of what Mr. Yatnal claimed. The order simply stated that S. Eshwar, counsel appearing for petitioner (Patil faction), filed a petition seeking interim relief. In response, Ashok Kumar Anchalia, counsel for factory management (Yatnal group), sought time to file reply, and the Bench gave time till March 23 for the purpose.

It also fixed April 3 as the deadline for filing rejoinder while posting the next hearing on April 16. The order restrained Mr. Yatnal and Managing Director, B.S. Patil from exercising voting power in respect of disputed shares till further order, or without consulting the Bench. It also asked the management to produce statutory records before it by March 9, 2007.

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