Rashmi Saluja, Chairperson of Religare Enterprises, has moved the Delhi High Court to restrain the company from taking up the decision on her re-appointment as director at the company’s Annual General Meeting on February 7.
The petition claimed that her current role as a director of REL is valid till 2028. However, as per Section 152 (6) of the Companies Act, one-third of the board, excluding independent directors, has to seek shareholder approval to continue as a Board member. As the sole executive director, Saluja faces annual retirement under this rule.
While the lawyers made preliminary arguments on maintainability, the Court did not grant Saluja relief, and the case is now listed for February 4.
Appearing for Saluja, Senior Counsel Mukul Rohatgi emphasised that her suit was distinct from the ongoing corporate control battle, arguing that the dispute centres on her contractual retirement terms.
He urged the court to grant an injunction preventing the REL board from passing a resolution to remove her or convening a meeting for that purpose. Incidentally, nobody appeared on behalf of Religare Enterprises.
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On the other side, Senior Counsel Nalin Kohli, appearing for REL’s four independent directors, contended that they were not even served a copy and that the suit was ‘almost collusive’ in nature and pointed to ongoing investigations concerning Saluja.
Burman family’s argument
Meanwhile, Senior Counsel Abhishek Manu Singhvi, appearing for the Burman family—which holds a 26 per cent stake in REL—argued that any board decision directly impacts them, yet they have not been impleaded in the case.
He also cited that the Madhya Pradesh High Court recently dismissed the case, and the matter is pending before the Delhi High Court’s division bench, where similar reliefs are sought.
After hearing preliminary arguments, Justice PK Kaurav directed that all relevant documents be served on the opposing parties and set a timeline for completing the pleadings by February 3. The next hearing is scheduled for February 4.
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Meanwhile, over 85,000 shareholders of Religare Enterprises, which has a market capitalisation of ₹10,000 crore, are expected to vote on various proposals at the crucial juncture in the ongoing power struggle between Saluja and the Burman family, who have been seeking greater control of the company.
With multiple legal proceedings unfolding, the resolution of the matter remains uncertain, adding another layer of complexity to the high-stakes corporate battle at REL.