The Delhi High Court has cleared the way for Bina
Modi, widow of industrialist K K Modi, to vote as a managing trustee of the K K
Modi Family Trust at the 87th annual general meeting (AGM) of Godfrey Phillips
India (GPI) on September 6, rejecting her grandson Ruchir Modi’s plea to stop
her from voting.
“I
find no merit in the present application. The same is dismissed,” Justice Navin
Chawla said.
The
AGM will decide on the leadership of GPI.
The court has also directed Bina Modi to file an
affidavit on a half-yearly basis on the remuneration and benefits she received
as managing director (MD) of the company. It also said if it passed a direction
against her appointment as MD then she would resign without claiming equity and
this should be stated at the AGM on Friday.
The
board of directors of GPI had approved Bina Modi’s reappointment as managing
director and her daughter Charu Modi’s reappointment as executive director for
five years. The reappointment is also likely to come up as agendas at the AGM.
This
is the third application filed by Ruchir Modi, son of former Indian Premier
League chairman Lalit Modi, who is Bina Modi’s son.
He
was seeking the removal of his grandmother from the office of the managing
trustee of the K K Modi Family Trust and the appointment of an administrator to
sell the trust assets and distribution of the net proceeds among the four
family branches.
He
had alleged Bina Modi was trying to vote for herself on behalf of the K K Modi
Family Trust and other trust companies to become managing director for next
five years. He said this was a conflict of interest.
The
court said the plea of Ruchir Modi that as his father Lalit Modi refused to
give his consent for the continuation of the family businesses or trust fund,
the Trust must be dissolved, does not appear to be correct.
The
court also said he had failed to establish how Bina Modi’s reappointment would
cause “irreparable loss” to him.
Meanwhile,
counsel for Bina and Charu Modi argued the Trust Fund, including the
family-controlled businesses, were to be administered, executed and managed by
Bina Modi and such decisions were final and binding on all the parties,
including the trustees and beneficiaries of the Trust.