The Vijay Mallya-Kishore Chhabria spat over control of Herbertsons has taken a new twist, with Mallya moving the Securities Appellate Tribunal, asking it to stay the implementation of its order of August 1, 2003.
This effectively means that Chhabria cannot make an open offer for an additional 20 per cent stake in the liquor company as directed by the tribunal. Mallya's appeal is due to be heard on August 25.
At a press briefing in Mumbai, Kishore Chhabria, vice-chairman of Herbertsons, showed a copy of Mallya's petition.
"The appellants are directed to divest the 19.71 per cent shares of the target company (Herbertsons), acquired in breach of regulation 10(2) of the 1994 regulations," the petition said.
Chhabria also said Mallya had filed a petition in the tribunal, praying that Chhabria be asked to offload a 19.71 per cent stake in Herbertsons to existing shareholders of the company in a 9:10 ratio.
He had, however, added the rider that neither parties to the dispute over control of Herbertsons -- Mallya and Chhabria -- be allowed to participate in the rights sale.
Mallya, however, told Business Standard in New Delhi that he had arrived at a settlement with Chhabria to buy the latter's 43 per cent shareholding in Herbertsons.
Mallya said he did not know about the petition filed with the tribunal. "I am not aware of what my lawyers are doing because I am busy in Parliament," he said.
"Kishore and I have decided that I will buy him out of Herbertsons. He has agreed to sell and I have decided to buy his stake in the company."
But Chhabria denied he was in talks with Mallya. "On the one hand, Mallya is talking of some settlement and on the other he is challenging the order passed by the tribunal and is attempting to have the it modified for the Chhabria family to be directed to divest these shares," he said.
Mallya said he was open to Chhabria taking BDA Distilleries, a subsidiary of Herbertsons, "if he wants". Chhabria brought BDA Distilleries to the Herbertsons stable in 1992 after he split with his brother Manu and in return got a 20 per cent stake in Herbertsons.
Later, Chhabria increased his shareholding in the company.
Mallya and Chhabria met in Mumbai earlier this month after the tribunal ordered Chhabria to make an open offer for a 20 per cent stake in Herbertsons within the next three months.
"We did not discuss any sale at the meeting," Chhabria said.