The Hindu Business Line : CLB to Bajajs: Settle dispute in a month

The CLB Chairman, Mr S. Balasubramaniam told the two brothers that in order to maintain the family name, they should resolve the dispute over cross-holdings in the Bajaj Group by adopting a give-and-take policy.

The CLB held that it should not be too difficult to settle the dispute now as the difference was only over a few crore of rupees. ``We have seen bifurcation of very big groups happen so smoothly. What is the problem with you. You are delaying the process,'' he said.

The younger sibling, Mr Shishir Bajaj, had moved the CLB when the settlement was not moving forward. The application was moved under Section 397 and 398 of the Companies Act that seeks relief in case of oppression and mismanagement.

MoU ready

In August this year, the CLB had asked both parties to try to implement the settlement package and report back to it. The counsel for both sides had then informed the CLB that the memorandum of understanding regarding the split in the group was ready and differences on the share transfers would be sorted out soon. However, that has not happened in the course of the case.

Differences in the family came to light after Mr Shishir Bajaj sought to take full control of Bajaj Hindustan and Bajaj Sevashram, the companies managed by him. In return, he proposed to part with his stake in Bajaj Auto and other group companies.

Holdings in the Bajaj family are equally divided among Mr Rahul Bajaj, Mr Shishir Bajaj, Mr Shekhar Bajaj, Mr Madhur Bajaj and Mr Niraj Bajaj, who hold approximately 30-40 per cent in each group company.

The Bajaj family has seen differences since Mr Shishir Bajaj asked the other family members to buy him out as he wanted to exit from Bajaj Auto to consolidate his position in his other two companies — Bajaj Healthcare and Bajaj Hindustan Ltd.

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