New twist to Timblo family feud

The Goa-based Rs 1,000-crore Timblo group's family feud took a new twist when Dilip Timblo, who had earlier sought that the case before the Company Law Board (CLB) be dismissed, joined his mother Sushila Timblo and brother Prashant Timblo in their petition.

The petition asks the board to conduct an enquiry into the accounts of Sociedade De Fomento Industrial Pvt Ltd, the family's flagship company.

In an application, Dilip contended that he was compelled to shift his stand as Audhut Timblo, the eldest brother and chairman of the company, was acting against the company's interest.

The about-turn came as Ambar Timblo, son of Audhut Timblo, indicated in his affidavit that he would take up mining of iron-ore of the Geetabala Parulekar mine.

The lawyers for the respondents dismissed the charges as baseless. After hearing the heated exchange of arguments by lawyers from both sides, the CLB today gave a new date for a hearing while asking the lawyers of both the parties to file affidavits regarding the period of the lease of Geetabala Parulekar mine with Sociedade De Fomento.

The original petition filed by Prashant Timblo, the youngest of the three brothers, and Sushila Timblo, the mother, had alleged that the mine was earlier being developed by Sociedade De Fomento but the lease was subsequently allowed to lapse.

Also the petition alleged that the company sold iron ore to Ambar Timblo's concern at prices far below the market rates.

CLB also asked the parties to work out a solution to the family dispute.

The real reason for the family feud as alleged by Prashant and Dilip is that Audhut is not recognising the mother's share of 20 per cent as per the family settlement agreed in 1994. Now the petitioners want Audhut to buy out the mother's share.

In November 2003, it was agreed that if Prashant sold his shares to Dilip Timblo, another brother, the company's assets and business would be valued at $100 million. Dilip has already paid Rs 13.8 crore as part consideration with promise to settle rest by June this year.

The mother's case was strengthened when in February 2004 the civil court appointed the mother as the administrator of the entire estate of Late Modhu Timblo.

Established under the Portuguese law in 1957, Sociedade De Fomento is primarily into mining iron-ore and has mines and mining rights in Goa and Karnataka.