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Informist, Tuesday, Aug 6, 2024

 

NEW DELHI – Kirloskar Brothers Ltd today withdrew its petition in the Supreme Court seeking direction to Kirloskar Oil Engines Ltd to disclose the 2009 family settlement deed as per the Securities Exchange Board of India's listing regulations. 

 

The top court gave liberty to the Kirloskar Brothers to make a fresh complaint with SEBI regarding the non-disclosure of the family settlement. "We make it clear that all contentions of parties are kept open and complaints to be decided as per law," the apex court said.

 

"You (Kirloskar Brothers) will now say that something happened 20 years back, it has to be published... effect will be disastrous," the bench of Justice Abhay S. Oka and Justice George Masish observed.

 

Kirloskar Brothers is controlled by Sanjay Kirloskar, while Kirloskar Oil Engines is controlled by his younger brothers Atul Kirloskar, Vikram Kirloskar and Rahul Kirloskar. Sanjay Kirloskar and his brothers entered into a family settlement in 2009, under which ownership, management and control of each branch of the Kirloskar family business was decided.

 

Kirloskar Brothers moved SEBI and later the Securities Appellate Tribunal saying that listed entities are required to make disclosures about family settlement agreements, which are deemed to be material events. SEBI said that the family settlement came into existence in 2009 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations came into existence in 2015 and were prospective, so there was no need for disclosure. The Securities Appellate Tribunal upheld the SEBI ruling.

However, in April, SEBI told the apex court that Kirloskar Oil Engines and Kirloskar Brothers have to disclose their 2009 family settlement deed. SEBI said that both the companies were "listed entities and dealing with public, much less investors of all sizes; whether small or big, it is paramount for them to make disclosure of DFS (Deed of Family Settlement) involved in the present appeal, in terms of amendment in the LODR Regulations".

 

Today, shares of Kirloskar Brothers ended 0.2% higher at 1,965.10 rupees on the National Stock Exchange, and those of Kirloskar Oil Engines ended 2.1% lower at 1094.45 rupees.  End

 

Reported by Surya Tripathi

Edited by Saji George Titus

 

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