D.K.MODI Vs. Y.K.MODI

JUDGEMENT

(1.) THE background to these applications is that the aforementioned suit has been filed by the Plaintiff, Dr. D.K. Modi son of Late Dr. K.N. Modi against his brothers, Mr. Y.K. Modi and Mr. M.K. Modi [Defendants 1 and 2 respectively] and his cousins Mr. K. K. Modi, Mr. S.K. Modi, Mr. U.K. Modi, Mr. V.K. Modi and Mr. B.K. Modi [Defendants 3 to 7 respectively], all sons of late Mr. Gujjar Mal Modi as well as Modi Rubber Limited ('MRL'), Modi Industries Limited ('MIL') and Modi Spinning and Weaving Mills Limited ('MSWML') [Defendants 7 to 10 respectively] for permanent and mandatory injunction and declaration.

(2.) IT is stated that late Mr. Multani Mal Modi had two sons, Dr. K.N. Modi and late Mr. Gujjar Mal Modi. Dr. K.N. Modi passed away on 27th May 2005 and Mr. Gujjar Mal Modi passed away in 1976. Dr. K.N.Modi's sons, Dr. D.K. Modi, i.e., the Plaintiff and his two brothers Mr. Y.K. Modi and Mr. M.K. Modi, i.e., Defendants 1 and 2 constituted Group A. The sons of late Mr. Gujjar Mal Modi, i.e., Defendants 3 to 7 constituted Group B. It is further stated that the united Modi Family has been in control of a large number of public limited companies, which hold various properties, assets, trusts, subsidiaries, shares, businesses and another assets. Both Groups A and B were jointly controlled and managed by late Dr. K.N. Modi. Subsequently, there arose disputes and differences between groups A and B with respect to the business of the Modi Group, leading to a split.

(3.) CLAUSE 4 of the MOU stated that the houses occupied by each Modi would continue with them. The expenses of the houses which were on lease were to "be met by the companies in which that Modi is managing and the houses owned by the company will be transferred at price fixed by the valuer to the company in which that Modi is managing." The trust and societies managed by each Group prior to the MOU was agreed to be managed by the respective Groups. Three of the companies, MIL, Modipon Limited and MSWML, were to be jointly managed by both the Groups. Clause 9 of the MOU read as under: