Aroma, the Bulgarian cosmetics maker, said it will try to reverse in court the injunction imposed on its shares by the Sofia city court.

Earlier this month, the court blocked the shares and extinguished all rights attached to them in response to a claim against the company filed by Krassimir Mitev, a former associate of Aroma supervisory board chairman Loukan Loukanov.

The company has also asked the inspectorate of the Supreme Judicial Council to investigate whether or not the magistrates overstepped their authority and if their actions breached any relevant legislation.

It is not acceptable to infringe on the rights of third parties through the principles of the execution process, the company said in its complaint.

What we have is a breach of the constitutional private property rights of parties unrelated in any way to the future claim, said Lukanov.

According to Aroma, the Sofia city court erred in its decision to grant injunctive relief because the necessary prerequisites were not in place and no evidence was presented that could have provided reasonable grounds to assume that the future claim would be cognizable.

The court merely detailed the averments of the plaintiff and then admitted the need for injunctive relief, said Aroma's complaint.

Aroma and two individuals, shareholders and Aroma employees, are also appealing the actions of the enforcement agent that executed the injunction order.

On July 30, the Central Depository blocked the Aroma shares in compliance with the injunction order The Bulgarian Stock Exchange (BSE) and later suspended the shares from trading.

The Aroma stock lost 18 per cent in a single day after the local media reported on the controversy.

The cosmetics company is not contemplating an out-of-court settlement with Mitev.

Loukanov said that would only heighten the option of infringing on the property rights of third parties unrelated to the long-standing dispute with Mitev.

The Financial Supervision Commission, BSE and the Central Depository have all voiced their opposition to the use of injunctive relief against a company's shares.

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