07 August 2006 ~ 0 Comments

Fight Club Fever


Fight Club Fever After almost a decade of feuding, the Ranbaxy family dispute has finally reached one kind of end. The curtain fell on the bitter family quarrel with Ranbaxy promoter duo Malvinder Singh and Shivinder Singh and the Max Group chairman Analjit Singh agreeing to a settlement over the disputed shares in Ranbaxy, held by the Bhai Mohan Trust and also on the will of Ranbaxy founder Bhai Mohan Singh. Another source of happiness for the family is that the US Court of Appeals handed down a judgment in favor of Ranbaxy in a case challenging Pfizer. The two warring bits of the family came out in support of each other, as it waved away the dispute that goes back to the early 1990’s. Nimmi Singh, Malvinder and Shivinder Singh, representing the Parvinder Singh Group of Ranbaxy and Analjit Singh jointly emphasized that the dispute had been settled amicably and that all members of the family were withdrawing litigation claims and disputes from court. No small thing that, as close to 12 cases related to the dispute, against various individuals of the family were pending in court! The tycoons have already filed an application stating that the dispute has been settled privately and that the court dispose of the remaining suits in accordance with the term decided upon amongst them. However, where does this now leave Manjit, Bhai Mohan Singh’s second son, who claims that he will continue to contest the will and that he was not party to any settlement. Interestingly, Bhai Mohan Singh had disowned Manjit Singh, and the rest of the family currently seems to have no pressing need to welcome him back to the fold once more. The Ranbaxy settlement makes for a bit of anti-climax, but even as the Ranbaxy family celebrates the end of their tug-o-war, the Modis gear up for battle over the control of Modi Rubber Limited. The disagreement turned intense with B.K.Modi and V.K.Modi both staking their claim to the company. The B.K.Modi faction termed the share transfer process as unsatisfactory after the V.K.Modi faction staked claim over 44 per cent of FI holdings as it offered a higher bid of Rs 91 per share. B.K.Modi was quick to counter with a price of Rs 95 per share. Financial institutions that hold equity in the company are eager that a settlement is reached as soon as possible since the company has been out of operations since a labour unrest in 2001. Time alone will tell whether the Modis too can gradually see beyond their differences and settle their dispute too.

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