Legal experts are skeptical about immediate settlement of the much-talked about 'higher priced' placement share dispute in the apex court as it, according to them, is burdened with a large number of other pending cases.
The long legal dispute is awaiting the final hearing in the Appellate Division of the Supreme Court (SC), they said.
"The Appellate Division is now dealing with other pending cases that are older than this legal dispute. The court is yet to start hearing on the placement share dispute. It might not be possible to hold the hearing this year," a legal adviser of the petitioners said.
"We are expecting that the apex court will hear it next year, disposing of this long legal dispute. We, however, will move the court to hold the hearing and settle it as soon as possible," he said.
Some investors filed a writ petition with the High Court (HC) claiming that they had to count loss of a 'substantial amount of money' as the IPO-share price was set at much lower than what they paid for pre-IPO placement shares of a listed company.
For redress, they first approached the Bangladesh Securities and Exchange Commission (BSEC). After failing to get positive response from it on their application and complaint, submitted on February 18, 2013 and March 5, 2013, they filed the writ for legal resolution.
A HC bench on May 19, 2013 directed the securities regulator to dispose of the investors' complaints, which were earlier placed to the regulator, within one month 'without fail'.
On June 23, 2013, the BSEC in a letter directed the company-Orion Pharma Ltd-to take necessary steps to settle complaint and application of three investors-cum petitioners-Romana Rouf Chowdhury, Nasreen Jamir and Zakia Rouf Chowdhury-in line with the HC order.
After getting the BSEC's directive, the company went to the Appellate Division seeking stay on the HC order. On June 26, 2013, the Chamber Judge of the Appellate Division stayed operation of the HC order, a lawyer concerned said.
According to their claim, the three investors separately bought a total of 2,20,000 placement shares of Orion Pharma at Tk 100 each including premium worth Tk 90 each in 2010.
Later, the company's initial public offering (IPO) proposal got approval with an offer price of Tk 60 including premium of Tk 50 per share.
"As a result, the investors together counted loss of Tk 8.8 million," AKM Abdul Quayum, legal adviser of the petitioners, told the FE.
In their complaints, submitted to the BSEC, the investors brought allegations of deceit, among others, through over-valuation of assets. They demanded return of the additional money with due interest.
When contacted, Md Ferdous Jaman, company secretary of Orion Pharma Ltd, said, "The legal matter is pending with the Appellate Division. We will fight in the apex court as there is no scope to return the money received against the placement shares under the Company Act."
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