Chandigarh Court Halts Changes in KPH Dream Cricket Board of Directors

Court Intervention in KPH Dream Cricket Governance

A new dispute has arisen within KPH Dream Cricket Private Limited, as a Chandigarh court has issued a temporary injunction preventing Mohit Burman, Ness Wadia, and Preity Zinta from modifying the Board of Directors until April 19. This decision follows a petition from fellow director Karan Paul, who has been ordered to respond by the next court date. Karan Paul, who has been a board member since January 16, 2009, holds a 6% stake in the company, while Burman owns 48%, Wadia 23%, and Zinta 23%.

Karan Paul raised alarms about a significant and immediate risk posed by Burman, Wadia, and Zinta, alleging they are attempting to seize control of the company. He has requested that, pending arbitration, the other directors be prohibited from appointing any new Additional, Non-Executive, or Independent Directors.

Additionally, Paul has sought to prevent the implementation of any resolutions that may arise from an Extraordinary General Meeting (EGM) scheduled for April 21, arguing that the notice for this meeting, dated March 24, is potentially invalid and unlawful. He stressed the urgency of the situation, as the company is likely to proceed with the EGM under the influence of the three directors.

The issues highlighted in the petition relate to the arbitration clause within KPH's Articles of Association (AOA). Established on March 10, 2008, under the Companies Act, 1956, the company primarily focuses on promoting cricket and operates as a franchisee in the Indian Premier League (IPL). Since its inception, it has managed the IPL franchise known as Punjab Kings.

In a related matter, Preity Zinta had previously approached the Chandigarh court to contest Mohit Burman's attempt to sell or encumber his 11.5% shareholding in the company.