NCLT order reinforces allegations of mismanagement of Kirloskar Brothers: Kirloskar Industries

Kirloskar Industries Ltd (KIL) announced that a recent order from the National Company Law Tribunal (NCLT) has bolstered allegations of mismanagement within Kirloskar Brothers Ltd (KBL), indicating a lack of independence among the company's board of directors. The dispute, involving KIL along with Atul Kirloskar and Rahul Kirloskar, who collectively hold a significant stake in KBL, stems from internal family conflicts with KBL's Chairman and Managing Director, Sanjay Kirloskar. \r

The NCLT's order, issued on May 21, 2024, concluded that KBL's affairs were being mismanaged and lacked transparency and independence. It upheld claims of oppression and mismanagement against KBL, its Board of Directors, and Pratima Kirloskar, Sanjay Kirloskar's wife. The tribunal also noted the influence of Sanjay Kirloskar and his family in the company's affairs, impacting board decisions and legal proceedings. \r

Additionally, the order rejected Sanjay Kirloskar's assertions of exclusive ownership and control over KBL under the Deed of Family Settlement (DFS), emphasizing the entitlement of petitioners to monetize their shares in KBL. The longstanding feud among the Kirloskar siblings, dating back to 2016, revolves around the family settlement for assets within the Kirloskar group, with Rahul Kirloskar and Atul Kirloskar holding prominent positions in affiliated companies.