Kohli v Lit & Ors

Kohli v Lit & Ors

The judge erred in failing to deduct two significant external debts (Global Radio Services Ltd and Asian Broadcasting Corporation Ltd) in the share valuation; all other grounds of appeal fail as the judge's findings were supported by evidence or justified by valuation methodology.

Parties
Petitioner: Ms Geeta Kohli; Respondent: Dr Avtar Lit; Respondent: Ravinder Kumar Jain; Respondent: Surinderpal Singh Lit; Respondent: Sunrise Radio Limited
Jurisdiction
England and Wales
Judgment Date
17 June 2013
Procedural Posture
Companies Act Section 994 Petition / Appeal From High Court Judgment on Quantum
Outcome
Appeal allowed in part
Legal Topics
Unfair Prejudice, Shareholder Buy Out, Valuation of Shares, External Liabilities, Consultancy Fees, Management Charges
Company Law Unfair Prejudice Shareholder Buy Out Valuation of Shares External Liabilities Consultancy Fees Management Charges

Case Brief

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Parties

Ms Geeta Kohli

Petitioner

Dr Avtar Lit

Respondent

Ravinder Kumar Jain

Respondent

Surinderpal Singh Lit

Respondent

Sunrise Radio Limited

Respondent

Procedural Posture

Companies Act Section 994 Petition / Appeal From High Court Judgment on Quantum

Legal Issues

  1. 1 Whether external liabilities beyond bank debt should be deducted in share valuation
  2. 2 Treatment of bank loan interest in maintainable earnings
  3. 3 Treatment of management charges in maintainable earnings

Ratio Decidendi

The judge erred in failing to deduct two significant external debts (Global Radio Services Ltd and Asian Broadcasting Corporation Ltd) in the share valuation; all other grounds of appeal fail as the judge's findings were supported by evidence or justified by valuation methodology.

Court Disposition

Appeal allowed in part

Orders

  • Sum payable to petitioner to be adjusted to reflect deduction of two external debts; parties to agree calculation for purposes of order