Goa's Timblo family spat may be resolved soon

The Goa-based Rs 1,000 crore Timblo group's family business dispute seems to be finally heading for resolution.

The Company Law Board (CLB) today asked the three Timbo brothers to bid for each other's share so that only one brother had control of the group. The successful bidder would also have to buy out the mother's 20 per cent stake.the CLB at the last hearing. Unless one of the Timblo brothers buys out the others 

This solution was suggested by the parties in before the next hearing the bidding for shares could take place at the CLB.

The solution came after protracted legal battle in which Prashant Modu Timblo, the joint managing director, and the younger sibling had filed a petition before the CLB seeking dismissal of the board of the group's flagship company Sociedade De Fomento Industrial Ltd and granting injunction restraining elder brother Auduth M Timblo from acting as the managing director.

The successful bidder is expected to deposit 20 per cent of the bid amount with the CLB. The flagship company's main business includes mining of Iron ore and realty and has mining rights in Goa and Karnataka.

Prashant Timblo had alleged that Auduth Timblo was mismanaging the company. The case moved towards resolution after Prashant Timblo, Dilip Timblo and their mother Sushila Timblo joined together against Auduth Timblo.

The mother has recently cancelled the 10 year old family agreement alleging that her shareholding has not been recognised and funds are being siphoned off from the company.

As per the shareholding agreement the mother was entitled to 20 per cent stake and the rest of the 20 per cent owned by late Modhu Timblo was to be divided equally among the three sons.