The Hindu Business Line : Bajaj brothers close to reaching settlement

Battle royale
Case between brothers in final stages of argument
In March, CLB stayed holding co board meetings
Settlement proposed by former SEBI chief

Our Bureau

New Delhi, Aug. 29 The four-year-old legal tussle between Mr Rahul Bajaj and Mr Shishir Bajaj, who are engaged in a legal battle over division of the Group, looks headed for a settlement.

During the proceedings of the Company Law Board (CLB) on Wednesday, lawyers representing both sides have sought a day’s time to discuss the prospects of a settlement, which was accepted by the CLB Chairman, Mr S. Balasubramanian.

The CLB resumed the proceedings after a gap of nearly six months.

The case between the brothers is in the final stages of argument and has been listed for three days of continuous hearing.

Both sides are expected to report before the CLB the outcome of their meeting in the next hearing.

In March this year, admitting an application from Mr Shishir Bajaj side, the principal bench of the CLB had stayed all board meetings of the two holding companies, Bajaj Sevashram and Jamnalal Sons Pvt Ltd.

Later, after mutual consent, the Bombay High Court asked the CLB to go ahead with the matter and fix a new date for hearing the case.

Mr Shishir Bajaj had opposed a board meeting of Bajaj Sevashram and Jamnalal Sons to induct Mr Rahul Bajaj’s son, Mr Sanjiv Bajaj, and cousin, Mr Niraj Bajaj.

He sought a ban on the induction of two representatives of Mr Rahul Bajaj’s faction in the five-member board of Bajaj Sevashram and one in the four-member Jamnalal Sons board.

The directorship and control of the two companies are crucial in the tussle over the control of the Bajaj empire, as the firms hold shares in Bajaj Auto, Bajaj Electricals, Bajaj Hindusthan (BHL) and Mukand Ltd.

In addition, Jamnalal Sons, which is a wholly owned subsidiary of Bajaj Sevashram, holds 78 per cent stake in Bachhraj & Co Pvt Ltd (BCOPL), the company through which the Bajaj family holds 24.54 per cent stake in BHL.

The two sides are battling it out before the CLB over the implementation of a family settlement proposed by former SEBI Chairman Mr D.S. Mehta. This settlement is being opposed by Mr Rahul Bajaj’s faction.