The amalgamation of the two RPG group companies, engaged in transmission tower business, was vehemently opposed by KEC Employees' Union and several employee-shareholders. However, a company official said the Delhi High Court had earlier approved the merger. Although the union went in for appeal, the division bench also approved the merger.

This is for the first time in corporate history that amalgamation petition has been rejected following an intervention of employee-shareholders, Kamani Employees' Union claimed in a release here. As RPG-T is based in Delhi and KEC in Mumbai, the two High Courts will have to approve the merger. ``We're waiting for the written order by the Mumbai High Court... then only we can comment on the issue,'' said an RPG official.

The petition urging amalgamation of the two companies was filed by KEC.The union and other employee-shareholders contended that KEC had deliberately not filed the latest audited accounts of both KEC and RPG-T and obscured the fact that RPG-T had become a loss-making company. ``We've already refuted the allegations of the union,'' the RPG official said.

The Union also contended that there were gross irregularities at KEC's shareholders meeting whereby there was destruction or disappearance of many ballots, impersonation or forgery of signatures on ballot papers so as to materially alter the voting pattern at the meeting.

The union further contended that if a fair and proper accounting was taken, it would be established that KEC had failed to secure the absolute majority stipulated by Section 391 (2) of the Companies Act.