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SC refuses to stay AML's public issue

The Supreme Court has refused to restrain Ajanta Manufacturing Ltd, maker of Orpat and Oreva brand watches, from going ahead with its proposed public issue under the corporate name Ajanta.

business Updated: Jul 27, 2008 16:05 IST

The Supreme Court has refused to restrain Ajanta Manufacturing Ltd, maker of Orpat and Oreva brand watches, from going ahead with its proposed public issue under the corporate name Ajanta.

FMCG company Ajanta India (AIL), exclusive and sole owner of trademark Ajanta except for clocks and time-pieces, had challenged in the apex court the Delhi High Court ruling allowing Ajanta Manufacturing (AML) to proceed with its public issue.

A Supreme Court bench headed by Justice S H Kapadia while refusing to stay the Delhi High Court adjourned the matter till Friday.

Challenging the High Court ruling, AIL said the impugned judgement was erroneous and liable to be set aside.

Senior advocate Arun Jaitley, appearing for AIL, said that AML cannot use AIL's corporate name for public issue when the former had the right to use the word Ajanta only for two products namely clocks and time-pieces.

The petitioner said that AML deliberately chose not to disclose in its Draft Red Herring Prospectus that an interim injunction was operating against it from using the word 'Ajanta' as a trade name/corporate name.

It contended that AML should change its company's name which should not include the word 'Ajanta' as AIL had an order in its favour from the High Court which restrained AML from using the mark 'Ajanta' as a tradename or corporate name.