The warring Bajaj brothers - Rahul and Shishir - resumed their legal battle on Monday in the Company Law Board over division of the business empire.
NEW DELHI: The warring Bajaj brothers - Rahul and Shishir - resumed their legal battle on Monday in the Company Law Board over division of the business empire after failing reach an amicable out-of-court settlement.
During proceedings before the Principle Bench of CLB, Rahul's counsel Ashok Desai said the group patriarch last week made an offer to his younger sibling, who turned it down.
Desai also informed the bench that Shishir Bajaj had terminated the Memoradum of Understanding between the brothers to divide the group. This was opposed by counsels appearing for Shishir, saying it was Rahul who first ended the MoU by filing a suit before the Bombay High Court.
Meanwhile, Shishir's side has filed a rejoinder before CLB for inspecting documents of some group companies.
Reacting to it, Desai said that the Shishir group has no right to file a petition under Section 397, 398, 399 and 402 of the Companies Act, 1956, alleging mismanagement of the company and oppression of facts.
"They themselves run their own companies... (and) cannot say that they have mismanaged their own entity," Desai argued, highlighting that Shishir Bajaj has filed a case against Bajaj Sevasram, of which he is the chairman.
He also pointed out Shishir was seeking relief against some trusts and employee relief funds of Bajaj Hindustan, Bajaj Electricals and Bajaj Auto.
Moreover, Desai alleged the Shishir camp sold some shares belonging to a few welfare trusts and it was against Indian Penal Code. He added many group firms such as Rishav Trading and Bajaj Trading were wrongly included in the petition to improve his share in the business.
"You inflated the figure of family's holding to 40 per cent. This is not an oppression (Sec 397) and mismanagement (Sec 398) petition," Desai said, indicating it was only a disguise to establish a higher share in the family business."
This was opposed by lawyers representing Shishir Bajaj on the ground that the trust and holding companies had crucial stake in the group companies.
"We have to run our business. If I am ousted and thrown out from the Board of Directors of Bajaj Sevashram then I would lose control over my company (Bajaj Hindustan)," Shishir's counsel said.
On including trusts and boards in the petition, Shishir's counsel added they were not seeking relief for that purpose. It was only for the purpose of valuation when a division of the group takes place, they said.
Later, CLB adjourned the proceeding till tomorrow when Shishir's counsel is expected to continue arguments.
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