 "Nephew, niece have no claim on family wealth share: Bharat Forge's Kalyani")
In the ongoing legal dispute between Baba Kalyani and his sister's children, the chairman and managing director (CMD) of Bharat Forge has submitted an affidavit in the court stating that Sameer and Pallavi Hiremath are not affiliated with the Kalyani joint family since they don't have a common male ancestor.
This submission was made in response to a plea by Sameer and Pallavi seeking temporary relief, requesting the court to prohibit Baba Kalyani from engaging in any transactions involving the assets of the Kalyani Hindu Undivided Family (HUF), including sales, transfers, or third-party rights.
In his affidavit filed on Tuesday, Baba Kalyani contested the rights of his nephew Sameer and niece Pallavi to initiate legal proceedings for the partition of the alleged Kalyani Family HUF. He argued that as members of the Hiremath family by birth, they lack the standing to litigate over the Kalyani Family HUF.
Earlier in March, Sameer and Pallavi, children of Sugandha and Jai Hiremath, initiated legal action in a Pune court seeking the division of the Kalyani family assets to secure their share. These assets encompass Bharat Forge and various listed and privately held entities.
During the recent hearing, the siblings urged the court to appoint a court receiver to safeguard the extensive HUF properties until the case is resolved. Baba Kalyani's legal team informed the court that they would respond by Thursday.
The affidavit further contends that the lawsuit lacks a valid cause of action and should be dismissed outright. It alleges vagueness and material facts suppression on the part of the siblings regarding the purported HUF properties.
What is the Hiremath-Kalyani family dispute?
This legal feud stems from a dispute over the control of the chemicals company Hikal, which led the Hiremaths to approach the Bombay High Court in 2023, accusing Kalyani of backing out on a familial agreement to transfer all Hikal shares to them.
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According to the Hiremaths, Kalyani is obligated to sell his stake in Hikal to them based on a decades-old family settlement, a claim Kalyani contested.
But Baba Kalyani has said that the 1994 family arrangement was just a "note" by his father, Neelkanth Kalyani, and not a legally binding document. The case is pending in court.
Kalyani also argued that since the family patriarch and his father, Neelkanth Kalyani, sold the shares of Bharat Forge that were otherwise supposed to be transferred to him, the family agreement stood repudiated (the family agreement mentioned Bharat Forge and Hikal shares).
What is Hikal, the source of a fight between Hiremaths and Kalyani?
Hikal, named for the first two letters of Hiremath and three letters of Kalyani, is a Rs 2,000-crore company with a market valuation at the end of Tuesday's trade of Rs 3,636 crore. The Hiremath family set up the company in the early nineties after taking a loan from Neelkanth Kalyani, the father of Baba and Sugandha.
The company is in the pharmaceutical sector, delivering active ingredients, intermediates and R&D services to pharmaceuticals, life sciences, biotechnology, and agrochemicals firms.
The Kalyani Group, comprising eight listed companies, commands a combined market capitalisation of Rs 75,600 crore. The flagship entity, Bharat Forge, is valued at Rs 58,105 crore, in which the Kalyani Group holds a 45.25 per cent stake.
Legal disputes within the Kalyani family are not unprecedented. Previous instances include a lawsuit filed by Baba Kalyani's niece Sheetal in 2015 demanding a share of the family assets.