The Mumbai High Court today ruled that Herbertson vice-chairman Kishore Chhabria's additional 21 per cent stake in Herbertson which he picked up from the market was void. Liquor baron Vijay Mallya, therefore, appears to have gone one up on Chhabria in the battle for control of Herbertsons.
Though the court order has not been released, the import of the judgement was released to the press by Vijay Mallya today evening through a release.
The court order, as put out by the Mallya camp, implies that only 27.2 per cent of Chhabria's stake is now to be considered legal, while the remaining 21 per cent Chhabria holds was acquired in breach of Sebi regulations.
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Mallya told newspersons that he was willing to buy Kishore's 21 per cent stake provided the price was reasonable. Later, he told Business Standard that in fact he was willing to buy out Chhabria's entire stake in Herbertsons.
"We know at what valuation we have sold shares to him, and at what price Kishore bought shares from the market. I am willing to give him a premium, provided it is reasonable," Mallya said.
"I am always interested in an amicable settlement with him. He should take cognizance of the fact that two judgements have gone against him. I have given him various options at various stages, but he cannot demand the moon," Mallya added.
When contacted, Kishore Chhabria said: "I've not seen the court judgement and so I do not want to offer any comment."
Kishore Chhabria had earlier told Business Standard that whoever lost the case in the Mumbai high court would go to the Supreme Court and that the battle for Herbertson would be a protracted one. So Chhabria could move the Supreme Court.
The court, in fact, has stayed the operative part of the order till December 31 to enable Chhabria to approach the Supreme Court, if he choses to do so.
Chhabria, who parted ways with his older brother Manu in the early 1990s, had received 26 per cent in Herbertsons in lieu of making BDA Distilleries a part of the UB group (a wholly-owned subsidiary of Herbertsons).
Thereafter, the younger Chhabria, along with his uncle M.D. Chhabria, mopped up shares from the market without Mallya's knowledge or consent.