K K MODI Vs. K N MODI

JUDGEMENT

(1.) . Heard parties counsel on this application for amendment of the plaint.

(2.) Mr.Rajiv Sawhney, learned senior counsel appearing on behalf of defendant No.10, states that they are not opposing the amendment.

(3.) The plaintiff and the defendant Nos. 1, 2 and 10 to 15 belong to Modi family and are interested in 20 limited companies known as 'The Modi Ground of Companies'. Late Sh.Gujar Mal Modi and Sh.Kedar Nath Modi, the two brothers started their venture. Sh.Gujar Mal Modi died in 1976 leaving behind his sons, namely, KK. Modi, plaintiff and his brothers Mr.V.K. Modi, Mr.S.K. Modi, Mr.B.K. Modi and Mr.U.K. Modi (Group'B' for short). Mr.M.K. Modi, Defendant No. 2, Mr.Y.K. Modi, Defendant No.14 and D.K. Modi, defendant No. 15 are sons of Sh.Kedar Nath Modi, defendant No.1. Some disputes and differences arose in the family about proper management and control of the companies. The Govt. of India through financial institutions is also involved for they have lent some advances to this group of companies and it was thought that Modi Group of Companies be split between Group A i.e. Sh.K.N. Modi and his sons and Group B companies of the plaintiff and his brothers to ensure their better management and profitability. A Memorandum of Understanding (M.O.U.) was executed on 24th January, 1989 in the office of the Finance Secretary, Government of India relating to 20 companies mentioned in paragraph 3 of the plaint. That M.O.U. (Annexure-A) was duly acted upon by both the Groups A and B as well as financial institutions and the Borad of Directos of Modi Group of Companies. Necessary resolutions were passed by the concerned companies accordingly. However, certain disputes could not be decided then and there and in pursuance of the said M.O.U., M/s. Billmoria & Company were supposed to prepare valuation report in respect of various companies determining the net worth of each company for the purpose of settlement of inter company group accounts and they accordingly prepared valuation report dated 29th January, 1991 (Annexure-C). M/s.Bansi S. Mehta & Company also prepared scheme of arrangement for Modi Spinning & Weaving Mills Company Limited and Modi Industries Limited in pursuance of Clauses 5 and 6 of the said M.O.U. after circulating a draft scheme of arrangement to the two Groups, namely, Group A and Group B before finalising it. It is alleged that Chairman and Managing Director, Industrial Financial Corporation Ltd. ('IFCI' for short) instead of accepting the valuation report and the scheme of arrangement sustituted the same by his own valuation and scheme of arrangement.