Kirloskar Industries Ltd on Tuesday (December 31) said it intends to challenge a recent directive from the Securities and Exchange Board of India (SEBI), which, in a letter dated December 30, 2024, advised the company to disclose the deed of family settlement (DFS) dated September 11, 2009, entered into by the members of the Kirloskar family under the SEBI Regulations.
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“The Securities and Exchange Board of India (SEBI) has vide letter dated December 30, 2024, advised Kirloskar Industries Limited to disclose the Deed of Family Settlement (DFS) dated September 11, 2009, entered into amongst the members of the Kirloskar family in their personal capacity under the SEBI LODR Regulations,” Kirloskar Industries said in a regulatory filing.
The company pointed out that the issue of whether the DFS is binding on the Kirloskar companies remains unresolved and is currently pending before the civil court since 2018. Kirloskar Industries has raised concerns over SEBI’s intervention in matters that are sub-judice, stating that the regulator’s decision contains factual inaccuracies and disregards established principles of contract, corporate, and company law.
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“The question of whether the DFS is binding on the Kirloskar companies is pending before the Civil Court since 2018, and despite this SEBI has opined on matters that are sub-judice. Further, SEBI’s decision not only contains factual inaccuracies but is in complete ignorance of inter alia settled principles of contract law, corporate laws and company law,” it said
Kirloskar Industries maintained that the company is not bound by the said DFS nor does the DFS have any impact on the company or create any restriction or liability on the company.
“In view of the same, the company is currently seeking appropriate legal counsel to challenge the SEBI’s decision by filing appropriate legal proceedings. We firmly believe in the principles of justice and fairness, and we have full faith that the judiciary will do justice in the matter,” it added.
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Shares of Kirloskar Industries Ltd ended at ₹4,474.65, up by ₹28.35, or 0.64%, on the BSE.
(Edited by : Shoma Bhattacharjee)
