The Company Law Tribunal in Hyderabad, which had previously heard the property dispute between YS Vijayamma, wife of late former CM YS Rajasekhar Reddy in AP, and his son YS Jaganmohan Reddy, had reserved its verdict. YS Jagan approached the tribunal in the matter of transfer of shares of Saraswati Power in Guntur district.
With this, both the parties presented arguments in their support. Jagan had earlier transferred shares in Saraswati Power and Industries Private Limited to his mother Vijayamma. YS Jagan requested in his petition that the share be handed over to him again. Arguments were also heard in this regard.
Also, the lawyer of Saraswati Power and Industries Private Limited, the lawyer for YS Jagan, and the lawyer for YS Sharmila presented their respective arguments. However, after the shares were transferred according to law, if the share is to be handed over to him again, the lawyers brought it to the attention of the NCLT that there should be a situation where there should be consent from both sides.
The lawyer of the company took it to the court that after YS Jagan gave the shares to his mother, he had no right to ask for them back. He also argued in the court that once the shares were handed over, neither YS Jagan nor YS Bharathi had any right to interfere in the affairs of the company.
On the other hand, arguments were also made on this occasion that the memorandum of understanding cannot be terminated unilaterally after giving the gift. On the other hand, the lawyer for Vijayamma also made his arguments strong. He made it clear that it was a cunning plan of YS Jagan to file a petition under Section 59 of the NCLT and dispute it.
The lawyers presented their arguments before the NCLT that YS Jagan and YS Bharathi should not interfere in the affairs of the company after they resigned from their respective positions as board directors. The NCLT, after hearing their arguments, has reserved its verdict. It is known that the hearing in this dispute has been going on for about 4 to 5 months.
