No arbitration, Kirloskar family dispute to be heard in Pune court

By: |
December 17, 2020 4:30 AM

The family settlement had demarcated separate lines of business for each Kirloskar family and nobody in the family, directly or through their companies, could compete with any other member.

Atul, Rahul and Vikram Kirloskar filed an application in this suit, claiming that the local court had no jurisdiction on the issue and that this matter should be referred for arbitration as decided in the family settlement.

The Kirloskar family dispute between the four brothers — Sanjay Kirloskar, and Atul Kirloskar, Rahul Kirloskar and Vikram Kirloskar — over violation of the Deed of Family Settlement will be heard in a Pune court. Civil judge, senior division, Pune, VV Nashikkar has rejected the application of Atul, Rahul and Vikram Kirloskar for referring the dispute to arbitration.

This order was regarding a suit filed by Sanjay Kirloskar in August 2018 pertaining to the violation of the deed of family settlement by his brothers signed on September 11, 2009. The family settlement had demarcated separate lines of business for each Kirloskar family and nobody in the family, directly or through their companies, could compete with any other member.

According to Sanjay Kirloskar, the CMD of Kirloskar Brothers which is into pumps business, this clause was violated by Atul and Rahul Kirloskar (Kirloskar Oil Engines) when they bought a pump manufacturing company (La Gajjar Machineries), which was a competitor of Kirloskar Brothers. Sanjay Kirloskar had asked for Rs 750 crore from his brothers towards damages.

Atul, Rahul and Vikram Kirloskar filed an application in this suit, claiming that the local court had no jurisdiction on the issue and that this matter should be referred for arbitration as decided in the family settlement.

The court did not accept their submission and observed that the defendants did not succeed in establishing that the court had no jurisdiction and only the arbitrators could consider the disputes. “Considering all legal aspects, facts and circumstances of the case in hand, being it is not the fit case to refer to the arbitration,” the order said.

The civil suit will now continue to be heard in Pune court. The court will hear the case on January 13. This is one of the six cases going on between the Kirloskar family members.

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