The decades-old Kirloskar family dispute is set to take centre-stage at the Securities Appellate Tribunal (SAT) on January 16, as Kirloskar Oil Engines Limited (KOEL) challenges a SEBI directive requiring the disclosure of a 2009 Deed of Family Settlement (DFS). The dispute, rooted in allegations of selective compliance and corporate governance lapses, has intensified in recent months with regulatory interventions and legal battles.
Kirloskar Brothers Limited alleges that KOEL violated the DFS by acquiring La Gajjar Machineries in 2017, a move that directly competes with KBL’s pump business. This acquisition prompted KBL to escalate the matter to the Supreme Court, where the case is still being heard.
In October 2024, SEBI directed KOEL to disclose the DFS, citing its material implications for shareholders and compliance requirements under the Listing Obligations and Disclosure Requirements (LODR) regulations.
KOEL in its December 31, 2024, filing, called SEBI’s directive an “ignorant interpretation” of contract and corporate laws. On January 4, 2025, KOEL filed an appeal with SAT, arguing that the DFS is a private agreement with no bearing on its listed entity obligations.