Bombay HC Directs Sale Of Chandamama IP Rights Following Jailed Owners' Consent [Read Order]
The Bombay High Court, earlier this month, ordered the sale of intellectual property rights of the classic children's magazine Chandamama after three former directors of M/s Geodesic Ltd gave their consent with regard to the possession and sale of tangible and intangible assets of M/s Geodesic Ltd. including its subsidiary companies (both Indian and overseas companies).
A Chennai-based magazine, Chandamama, was started 72 years ago by two Telugu film producers, B Nagi Reddy and Chakrapani. Since then, the magazine has been published in 13 languages, including English.
Justice SJ Kathawalla passed the order for sale of the children's magazine that was acquired in March 2007 by M/s Geodesic Ltd. The company acquired a 94 per cent stake in Chandamama from B Viswanatha Reddy, son of Nagi Reddy, and Vinod Sethi, former managing director of Morgan Stanley Investment Management, for Rs 10.2 crore.
In June 2014, the court allowed the winding up of M/s Geodesic, which failed to pay $162 million (approximately Rs 1,000 crore) to its 15 Foreign Currency Convertible Bond (FCCB) holders in April 2014. There were also allegations of money laundering and siphoning off funds.
It was submitted before the court in a hearing on January 9 that three former directors of Geodesic, who are in Arthur Road jail right now, had given their mutual consent to the sale of all intangible and tangible assets of M/s Geodesic through letters.
Then, on January 11, these three directors appeared in court and confirmed their consent as mentioned in the three letters. They also confirmed that there was no coercion involved and they had given the consent at their own free will.
According to The Indian Express, the children's classic has been valued at over Rs 25 crores.
Read the Order Here