Vadodara, Feb 24 : Turn-key solutions provider Jyoti Ltd has approached the Supreme Court to avert a hostile takeover bid by Mumbai-based stockbroker Bharat Patel and his associate investors, the 70-year old firm said here.

In a release mailed to IANS Tuesday, the company management said it will also approach market regulator Securities and Exchange Board of India (SEBI) against Patel's move to unseat the promoters and the board members using foreign investors to circumvent the SEBI Takeover Code.

Patel, along with Mumbai-based Finquest Financial Solutions, has issued a notice proposing to convene an extraordinary general meeting (EGM) March 17 of shareholders of Jyoti Ltd seeking removal of the board of directors, including Rahul Amin, CMD.

Patel was removed as a director in a shareholders meeting held on November 10, 2014. Patel had been on Jyoti's board since 2010 when he bought about 11 percent stake in the company.

The company said the promoters, including Amin, hold 32.66 percent share in the company, while Patel and his associates allegedly hold over 40 percent. This is a phenomenon called Green Mailing, widely prevalent in foreign countries but rare in India, the statement added.

The Jyoti management has alleged in its release that Patel is "blackmailing the promoters to pay much higher premium for his holding or get thrown out from the management of the company".

Jyoti also alleged that Patel was found accumulating company shares in the name of other investors including Mauritius-based foreign institutional investors (FIIs) - Orange Mauritius Investments Ltd. (4.9 percent) and Hypnos Fund (4.79 percent).

After the issue of fresh equity to Bharat Patel and another investor Nirma Chemical Works Pvt Ltd (7.01 percent), the promoters' holding reduced to 32.4 percent.

The investors led by Patel had alleged that the promoters and the directors of Jyoti are working against the interests of the company and its shareholders.