Bajaj family patriarch and Chairman of Bajaj Group, Rahul Bajaj today asked the Company Law Board to dismiss his sibling Shishir Bajaj's petition in their ongoing tussle over the division of the group citing the latter's lack of Locus Standi.
"This petition is liable to be dismissed as he (Shishir) lacks standing in all the group companies against which he is seeking relief," submitted Senior Advocate and former Attorney General Ashok Desai, appearing for Rahul Bajaj.
Rahul' side also opposed Shishir's prayer to the CLB to wind up and restructure Bajaj Sevashram, a group investment company.
"There is no question of restructuring the group companies," submitted the counsel.
Desai also pleaded that in the petition, Shishir who alleged oppression and mismanagement in other group companies, has not brought out the same in the case of Bajaj Sevashram--a company which he is the Chairman of, while seeking winding up and restructure of the group investment company.
"He (Shishir) is actually controlling that company (Bajaj Sevashram), so he could even say for oppression and mismanagement," Desai submitted, adding that Rahul Bajaj was no where in the picture of the management of the group investment company.
He also pointed out that mere failure to arrive at a settlement or negotiation between the brothers was not a ground for filing petition under section 397 (oppression) and 398 (mismanagement) of the Indian Company Act. Control over two group companies -- Bajaj Sevashram and Jamnalal & Sons is very crucial for the Bajaj scions, Rahul and Shishir, as it controls family's stake in group companies.