It's not family issue: Shishir Bajaj

NEW DELHI: Agruing over the jurisdiction of the Company Law Board (CLB) to hear the Bajaj empire divsion case, Shishir Bajaj today asserted that the matter was a partnership issue and not a family matter as made out by his elder brother Rahul Bajaj.

During the proceedings, Rafique Dada, appearing for Shishir, submitted that the nature of holding of the Bajaj family in the group was in the nature of partnership between the brothers and corporate law has jurisdiction in such cases.

"Corporate law has jurisdiction to hear partnership disputes... it has right to entertain where two partners venture," Dada said.

Shishir's submission came after Rahul's side argued last month that CLB has no jurisdiction in this case. Rahul's counsel had contended that Shishir's petition was not maintainable as it was a pure family matter and he was seeking a division in group in disguise of a corporate petition.

"I have a right as shareholder in a family company as shares of my account are parked there," he submitted.

Dada further alleged that Rahul Bajaj, who claims to run the company in a professional manner, pushed his two sons in the management. "That is family then... but when it comes to my son (Kushagra), he denies on certain grounds. That is to show his mindset," Shishir said.

Pointing towards senior Bajaj, Dada submitted that he tried to appoint a proxy managing director in Bajaj Sevashram, a group investment company. "This post was never in the company. They proposed to give him (proxy managing director) similar power, which Shishir has as Chairman," he said.

Control of two group investment companies, Bajaj Sevashram and Jamnalal Sons, are very crucial as it holds the Bajaj family's interest in the group. "If one partner is ousted and not allowed to manage the company, it comes under the gambit of corporate law. It's a breach of partnership principles. How two sons (of senior Bajaj) and one brother (Shekhar) are allowed to manage the company and my powers are curtailed. Where would I go," Shishir submitted adding that they started parallel meetings and maintained separate minutes of those meetings.

He further submitted: "Writings on the wall of the group was very clear.... either I should bow down or he would throw me away. How could you say that one brother (Shishir) would sit at home. Things started going in such a way that I wanted to separate my way, and wanted proper valuations of my share."

Meanwhile, during the proceedings, when CLB chairman S Balasubramanian asked from both sides whether he should pass a 'speaking order' over the maintainability of the petition, there was wide difference among both sides.

While Rahul's side insisted for speaking order, Shishir submitted that the board should pass such an order only in the final order.

After that, the CLB chairman adjourned the hearing to the first week of September after suggesting to both sides: "in the meanwhile, try to convince your clients to negotiate."