Settlement with R R Modi delayed

The settlement between Shaw Wallace & Company Ltd (SWC) and R R Modi's companies will be deferred by a day or two as the terms of settlement has not been approved by the both the parties, till today.

If the settlement is deferred, then the open offer of Vijay Mallya to purchase the SWC share will also be delayed till final settlement is reached, as the court passed an order of maintaining status quo and also took an undertaking from the SWC counsel regarding sale of shares.

SWC sources said that the company was willing to file the terms of settlement before a division bench of the Calcutta High Court although the matter was adjourned by Justice K J Sengupta on the ground for settlement.

Justice Sengupta earlier, passed an order of status quo regarding the brand name and trade mark of SWC and recorded the submission of SWC counsel that they are not selling their shares.

SWC sources said that in the terms of settlement it was written that two flats situated at Worli, Mumbai will be transferred in the name of R R Modi and for that reason a company will be added in the case.

Apart from the two flats, from the sale proceeds of SWC's beer business, SWC shall be paid the outstanding amount to the Modi's company within seven days of receipt of such sale proceeds, it is learnt from SWC sources. A whole time director of SWC will be coming to the city to sign the terms with Modi.

Justice Sengupta passed the order following three petitions filed by three companies namely Vishisht Chay Vyaar Ltd, MKJ Enterprises Ltd & MKJ Developers Ltd. Justice Sengupta fixed March 22 the day for settlement.

SWC filed appeals in the division bench. Now SWC wanted to file the terms of settlement in the division bench instead of single bench.