Use mediation to settle Lalit Modi family dispute: SC

One-liner: The Supreme Court on Monday suggested mediation to Lalit Modi and his mother Bina Modi, wife of late industrialist K K Modi, to resolve the long-pending property dispute in the family.

Need to name mediators: It wanted both the parties to give names of mediators of their choice while hearing the appeal of Lalit Modi against the judgment of a division bench of the Delhi High Court.

• The lawsuit was earlier filed by Bina Modi seeking to restrain the arbitration proceedings initiated by Lalit Modi in Singapore over the dispute
• A bench headed by Chief Justice N V Ramana, after hearing arguments from a battery of lawyers appearing on both sides, said that ultimately, it was a family dispute over property and suggested mediation or arbitration in India

Hearing on Dec 13: It also listed the plea for hearing on Dec 13 and advised both parties to name their mediators.

Need to know: Bina, Charu and Samir, in two separate suits, contended that there was a trust deed between the family members and the KK Modi family trust matters can't be settled via arbitration in a foreign country as per Indian laws.

• They have sought a permanent injunction restraining Lalit Modi from prosecuting or continuing with the application for emergency measures and any arbitration proceedings against them in Singapore
• The division bench, in its 103-page judgment passed on Dec 24, 2020, had said the dispute ought to have been prima facie adjudicated by the single judge, who had to exercise the jurisdiction vested in the court.

Background: As per the case, the trust deed was executed at London by KK Modi as settlor/ managing trustee and Bina, Lalit, Charu and Samir as trustees, and in pursuance to oral family settlement recorded between them on Feb 10, 2006. KK Modi died on Nov 2, 2019, after which the dispute emerged amongst the trustees.

Source: PTI