The legal tussle between TTK group and UK-based New Bridge Holdings, a step-down subsidiary of Reckitt Benckiser Group, over a joint venture dispute related to TTK-LIG, which manufactures contraceptive brands Durex, Kohinoor and Fiestas, has come to an end.
According to sources close to the development, both parties have agreed New Bridge Holdings would sell its 49 per cent share in TTK-LIG to the TTK group, while TTK-LIG would sell its 49 per cent stake in SSL-TTK, the manufacturer of Scholl footwear and footcare brand, to Reckitt Benckiser Group.
New Bridge Holdings is expected to buy all the stocks with the Reckitt Benckiser trademark.
When contacted, T T Jagannathan, chairman of TTK Healthcare, said a formal announcement on the issue would be made soon.
R Jawahar Lal, partner at PRA Law Offices, which is advising the joint venture’s foreign partner, confirmed the litigation was settled through an agreement signed on September 28, and a joint application had been filed before the Supreme Court today. The court has disposed of the appeal filed by TTK. Lal added other litigation between the parties would be withdrawn after the agreement was completed.
Earlier, the dispute between the two joint venture partners was heard by the Company Law Board and the Madras High Court.
In 1963, TTK had formed a joint venture with UK-based London International Group under the name London Rubber Company (India), before changing the name to TTK-LIG in 1997.
Both LIG and TTK had 49.87 per cent stake in the JV. In 1999, LIG was acquired by healthcare firm SSL, and its entire stake in the JV was transferred to a wholly-owned subsidiary, New Bridge Holdings. In November 2010, Reckitt Benckiser acquired SSL and its subsidiary became a step-down subsidiary of Reckitt Benckiser.