The Securities Appellate Tribunal on Tuesday dismissed United Breweries' appeal for a review of its earlier order to Kishore Chhabria to make a public offer for a 20 per cent stake in Herbertsons.

On February 19, 2002, the Securities and Exchange Board of India had ordered Chhabria to divest his holdings in Herbertsons through an offer for sale to the public and to reduce his group shareholding in the company to less than 10 per cent.

Chhabria appealed in the tribunal against this. The tribunal on August 1, 2003, overturned the Sebi order and ruled that Chhabria should make a public announcement to acquire up to a minimum 20 per cent stake in Herbertsons.

Chhabria also went on record to say he would make the open offer. United Breweries and its chairman Vijaya Mallya then filed a review application in the tribunal.

"The applicants (United Breweries and Mallya) cannot be considered persons aggrieved as a result of the order passed by the tribunal and also that the order is not against the applicants," the tribunal observed.

It also said the fact that the UB group was in the management of the target company (Herbertsons), "and that by virtue of the public offer they may lose their control of the management is not a ground for seeking review of the order."

Its order was issued in the interests of shareholders and in tune with the objectives of takeover regulations, the tribunal pointed out.

The UB group, the order noted, had not sought any relief "vis a vis any grievance. In fact, they have failed to state in the applications as to how they are aggrieved by the tribunal's order".