Kirloskar family row: SC seeks views of Atul, 13 others on mediation

One-liner: The Supreme Court on Thursday asked industrialist Atul Chandrakant Kirloskar and 13 others, made respondents by Kirloskar Brothers Ltd (KBL) in an appeal, to apprise it of their opinion on the issue of mediation to settle the family feud related to assets.

HC order challenged: KBL, whose CMD is Sanjay Kirloskar, has challenged a Bombay High Court order directing arbitration in the assets case. 

  • The top court on July 27 had ordered status quo in the matter and asked the parties involved to explore the possibility of mediation
  • A bench headed by Chief Justice N V Ramana took note of the submissions of senior advocates appearing for Kirloskar Brothers Ltd and Shyam Divan on the issue of mediation and asked the counsel for Atul Chandrakant Kirloskar and others to make their views on the matter

Bench agrees to hear plea: On Nov 12, the bench had agreed to hear the plea of Kirloskar Brothers against the Bombay HC order directing arbitration in the assets case.

Status quo: Before this, the bench had ordered status quo in the case between feuding family members of the Kirloskar group and it was also extended to the proceedings in the Pune civil court on KBL seeking damages for violation of the family deed.

  • Asking the parties involved in the case to explore the possibility of mediation, the bench had issued notice on the appeal by Sanjay Kirloskar and asked them to file replies within six weeks
  • Being aggrieved, KBL had earlier filed a case in a Pune civil court seeking ₹750Cr damages for violation of the agreement 

Arbitration: During the pendency of the suit in Pune court, Atul, Rahul and other respondents moved the Bombay High Court saying DFS had a clause that in case of dispute the parties can go in for arbitration.

  • The high court, hearing their plea, had agreed with them and ordered a resolution through arbitration
  • This order has now been challenged by Sanjay Kirloskar in the top court on the ground that only disputes relating to Kirloskar Institute of Advanced Management Studies (KIAMS) and Kirloskar Foundation (KF) shall be referred for arbitration and no other disputes would be entertained by the arbitrators

Source: PTI

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