The Division Bench of the Bombay High Court comprising of their Lordships, the Honorable Mr. Justice B.N.Shrikrishna and Honorable Mr. Justice S. Radhakrishnan, on 1st march 2000 summarily dismissed the Appeal filed by the Blue Star Employees' Federation against the order of the Company Bench, which approved the Scheme of Arrangement of Blue Star Limited (BSL) for the spin off of its International Software Division to Blue Star Infotech Limited (BSIL). The Bench directed the Union to pay costs of Rs. 15,000/- to the company, and rejected the Union's request for a stay of the order.
The scheme will be effective retrospectively from October 1, 1998. The assets of the Software Division will be transferred to the new company at book value.
Shareholders of Blue Star Limited will get 1 share of BSIL and 3 shares of BSL in place of every 4 shares of BSL held by them. Consequently, the share capital of Blue Star Limited will be reduced by 25%.
The Public Relations Dept.
Blue Star Limited
Date: 2nd March, 2000