Kirloskar Brothers shares slip 1.2% as Supreme Court sends family dispute to arbitration
The stock ended at ₹1,899 on the NSE, down ₹23.40 or 1.22 per cent from Monday’s close of ₹1,922.40
Kirloskar Brothers Ltd shares experienced a 1.2% decline on Tuesday after the company announced a Supreme Court order mandating arbitration in a longstanding family dispute. The stock closed at ₹1,899 on the National Stock Exchange (NSE), slipping ₹23.40 or 1.22% from Monday's closing price of ₹1,922.40. The trading volume was light, with 0.28 lakh shares exchanged, resulting in a turnover of ₹5.38 crore. The company's market capitalization stood at approximately ₹15,088 crore at the close of trading.
The sell-off came in the wake of the company's Regulation 30 disclosure made to stock exchanges on Monday evening. This disclosed a Supreme Court order passed on August 11 in the case between Kirloskar Brothers Ltd and Atul Chandrakant Kirloskar, along with others. The court resolved three Special Leave Petitions filed in 2021 and ordered the establishment of a three-member arbitral tribunal to resolve disputes stemming from a Deed of Family Settlement dated September 11, 2009.
The Deed had previously allocated management and control of various Kirloskar Group entities among different branches of the family.
The Supreme Court appointed Justice Nitin Madhukar Jamdar, a former Chief Justice of the Kerala High Court, as the arbitrator for Kirloskar Brothers, while Justice K.R. Shriram, a former Chief Justice of the Madras and Rajasthan High Courts, was designated as an arbitrator on behalf of the contesting respondents. The two chosen arbitrators are to jointly appoint a presiding arbitrator within a four-week timeframe, with Pune designated as the arbitration seat.
The court left several questions of arbitrability unresolved, including whether individuals who did not sign the Deed of Family Settlement are bound by its arbitration clause. This matter is to be determined by the tribunal as a preliminary issue. The company stated that the financial implications of the proceedings cannot be assessed at the present time.
Despite the decline on Tuesday, Kirloskar Brothers Ltd shares have still managed to rise nearly 18% year-to-date and have delivered more than 400% returns over a five-year period.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
