Yet another family feud has broken out in India Inc, this time in the Goa-based Timblo family.
Prashant Timblo and his mother, Sushila Timblo, are locked in a fight with his brother, Audhut Timblo, over the control of Sociedade De Fomento Industrial Pvt Ltd, the flagship of the Rs 1,000 crore (Rs 10 billion) Timblo group with interests in iron ore mining, hotels and beverages.
Prashant and Sushila have petitioned the Company Law Board to supersede the board of the company, appoint an administrator to take charge of its management and affairs and conduct an enquiry into the accounts of the company along with a special audit.
Modhu Timblo, the family patriarch who had a 40 per cent stake in Sociedade De Fomento, died intestate in 1993. The remaining 60 per cent was held equally by his three sons, Audhut, Prashant and Dilip.
There was then a family agreement in 1994 between his wife, Sushila, and the three sons whereby Sushila got half of her husband's shares and the remaining half was equally divided between the brothers.
Prashant has alleged in his petition that Auduth mismanaged the affairs of the company resulting in severe losses. He also alleged that he was physically prevented from entering the premises of the company, though he was a joint managing director.
Meanwhile, Sushila opened another flank against Auduth canceling the ten-year-old family agreement and laying claim on the entire stake of her late husband. Her case got strengthened in February 2004 when the Civil Court appointed her as the administrator of the entire estate of late Modhu Timblo.
The case came up for a hearing at the CLB on Tuesday. The court directed the parties to sort out the dispute before the next hearing takes place.
It also directed the company to maintain the current status of its assets till such time. Lawyers representing Auduth told the court that the claims of the mother would be looked into.
Sociedade De Fomento was set up under Portuguese law in 1975 and is a closely held company.