In a significant development in the ongoing legal feud within the prominent Kalyani industrial family, the Bombay High Court delivered a procedural order on Monday. The court allowed the children of Sugandha Hiremath to amend their existing lawsuit against their uncle, Bharat Forge chairman Baba Kalyani.
Court Grants Permission to Amend Plea
The bench permitted Sugandha Hiremath's children, Sameer Hiremath and Pallavi Swadi, to modify their legal petition. This amendment will enable them to formally seek a specific restraint order. They aim to block the exercise of voting rights attached to shares of various Kalyani Group companies. The core of their argument is that these shares were acquired or subscribed to using funds from the common family pool, known as the Kalyani Hindu Undivided Family (HUF).
The court also granted them leave to include a request for the appointment of an independent administrator. This administrator would be tasked with deciding how the voting rights of the contentious shares should be exercised, taking into account the interests of all parties involved. Currently, Baba Kalyani and his immediate family control the voting rights for shares in Bharat Forge and Kalyani Steels that were financed through the HUF.
What the Order Does and Does Not Do
It is crucial to understand the scope of Monday's ruling. The Bombay High Court's decision overturns an earlier order from a Pune court that had rejected the amendment. However, this procedural victory does not automatically grant Sugandha's children any voting rights or administrative control over the disputed assets.
The court has merely opened a legal avenue for them to plead their case. The substantive questions of who ultimately controls the voting rights and the nature of the assets will be adjudicated upon by the High Court in subsequent hearings. The legal battle stems from the Hiremaths' contention that a substantial portion of the Kalyani Group's wealth, including shares and prime real estate, originated from and rightfully belongs to the larger HUF, not to individual family members alone.
Reactions and the Road Ahead
Reacting to the order, a spokesperson for the Kalyani Group sought to downplay its impact. The spokesperson stated, "The order is purely procedural and reflects settled law permitting a party to seek relief. It grants no substantive relief to the Hiremaths in relation to voting rights or property, as is being suggested."
This amendment sets the stage for the next phase of this high-stakes corporate family dispute. The Bombay High Court will now have to delve into the complex issues of HUF fund usage, share ownership, and corporate governance within one of India's leading industrial conglomerates. The outcome could have significant implications for the control structure of the publicly listed Bharat Forge and other group entities.
