On September 5, 2024, the Delhi Tall Court ruled in CS(OS) 493/2024, a eminent case including the K.K. Modi Family Believe. The case concerned inside debate between Ruchir Modi (the offended party), a recipient of the believe, and Bina Modi (the respondent), the Overseeing Trustee of the K.K. Modi Family Believe. The essential issue at stake was the administration of the trust's resources, counting family-controlled businesses, after the death of Mr. K.K. Modi.
Arrangement of an Chairman:
Ruchir Modi looked for the court's mediation to delegate an autonomous chairman to oversee the issues of the K.K. Modi Family Believe, including exercising voting rights within the Yearly Common Assembly (AGM) of Godfrey Phillips India Ltd. (GPIL) planned for September 6, 2024. He contended that Bina Modi's activities as Overseeing Trustee were in breach of the believe deed and her guardian obligations.
Disintegration of the Believe:
Ruchir Modi too looked for a court declare to break up the believe, charging that the trustees had not collectively concurred to proceed its operation. Concurring to him, beneath the terms of the believe deed, the believe ought to have been broken up, and its resources sold taking after the passing of Mr. K.K. Modi.
The Court's Interpretation
The case's judge, Justice Navin Chawla, gave a thorough examination of the trust deed. The court noted that Bina Modi was expressly granted broad authority to oversee the trust's operations by the deed, enabling her to take on the role of Managing Trustee upon the death of Mr. K.K. Modi. The plaintiff claimed that in order for the trust to carry on with its activities, unanimous approval was needed, but the court rejected this claim.
It held that under Clause 4.1 of the trust deed, Bina Modi had the authority to manage the trust and family-controlled businesses, and the requirement for unanimous consent among the trustees would only arise after her tenure as Managing Trustee ends.
The court also found no merit in the plaintiff's request to appoint an administrator, stating: “As long as defendant no.1 is the Managing Trustee, it is she alone who shall have the power to manage and control the family businesses and the Trust Fund.”
Conclusion
The court rejected the plaintiff's application for intervals alleviation, permitting Bina Modi to proceed as the Overseeing Trustee and to vote within the up and coming AGM of GPIL. In any case, the court coordinated that she record an sworn statement uncovering all compensation and benefits gotten from her position as Overseeing Chief of GPIL on a half-yearly premise. The court encourage famous that in case it is afterward decided that her arrangement damaged the believe deed or the Indian Trusts Act, she would be required to leave from her position.
The administering emphasized that any perceptions made in this judgment were prima facie in nature and would not influence the ultimate result of the case.
The another hearing is planned for October 22, 2024, where assist perspectives of the case, counting extra applications recorded by the offended party, will be considered.
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TAGS: Delhi High Court K.K. Modi Family Trust Godfrey Phillips India family dispute Bina Modi Ruchir Modi trust deed trustee managing director interim relief fiduciary duties
