Mumbai: The National Company Law Tribunal (NCLT) has provided a resolution to the long-standing family feud within the Bedekar Group, a 123-year-old business known for its pickles, spices, and ready-mixes. The Tribunal has granted relief to one of the family members, allowing him to exit the company by ordering the buyout of his 8% shareholding by the other family faction.
The ruling comes after a petition was filed by Shridhar Vasudev Bedekar and his two sons against the company, his brother Vasant Vasudeo Bedekar, and several others, alleging oppression and mismanagement within the company. Although the petitioners were unable to substantiate these claims, the Tribunal did address their secondary plea, which sought the appointment of Shridhar's son, Suhas, as a director and requested that the respondents buy out the petitioners' shareholding.
The NCLT's directive specifies that the buyout should be conducted at a fair value, which is to be determined by an independent registered valuer. This valuer is to be appointed by mutual agreement between the parties within a month from the date of the order. Should the parties fail to reach a consensus on the appointment of the valuer within the stipulated time, the Tribunal has allowed the petitioners to approach it again for further instructions.
In its judgment, the NCLT dismissed the petitioners' grievance regarding the non-payment of gratuity to Shridhar Bedekar, pointing out that the issue had already been litigated and dismissed by the Civil City Court in 2013. The Tribunal emphasized that the petitioner cannot re-agitate the matter in the current proceedings, stating, "Non-payment of gratuity cannot be an act which can be said to be an act of oppression and mismanagement."
Regarding the directorship of Suhas Bedekar, the NCLT ruled that the petitioners failed to prove any promise made by the company’s chairman guaranteeing a permanent directorship due to their investment. The Tribunal asserted that a mere disappointment does not create a legal right to a directorship under the Companies Act or the company's Articles of Association.
Despite rejecting the claims of oppression and mismanagement, the NCLT recognized the deep-rooted family ties within the closely held Bedekar Group, which has been in business for over a century. The Tribunal observed that the shareholding of the petitioners had been reduced to less than 8%, and while this reduction may not be directly attributable to the respondents, an exit for the petitioners would be appropriate to end the protracted litigation and animosity between the family members.
The Bedekar Group, founded by the late Vishwanath Parshuram Bedekar in 1905, started as a modest grocery shop in Girgaum. The business expanded under the leadership of his son, Vasudev Vishwanath Bedekar, who launched a range of spices and pickles in 1920 that gained widespread popularity.
