The family dispute between the promoters of the Anchor Group has reached the Supreme Court, which has asked brothers Mehul and Hemang Shah to resolve their differences through mediation. The court appointed retired judge AS Oka as the mediator.
The court’s intervention came on a petition filed by Mehul Shah, challenging a Bombay High Court order that directed the immediate release of Hemang Shah, who was arrested on May 18 following a police complaint by the elder brother alleging misappropriation of funds and criminal breach of trust. The high court had termed his arrest by Mumbai Police’s Economic Offence Wing “illegal”.
A Supreme Court bench comprising Justices Rajesh Bindel and Manmohan in its order of August 8 said the matter may be referred to mediation as both sides have agreed to resolve their issues.
Mehul and Hemang Shah have been fighting over the control of electrical switches and home automation company GreatWhite Global, where the brothers hold equal stakes. The Shah family launched the brand after it sold the Anchor brand of switches for around ₹2,000 crore in 2007 to Panasonic (then Matsushita Electric Works).
In November last year, Hemang Shah approached the Mumbai bench of the National Company Law Tribunal (NCLT), accusing his brother of oppression and mismanagement of the company’s affairs. The tribunal on June 17 observed that the two parties cannot stay together and hence directed Hemang Shah to make an offer to buy the shareholding of Mehul Shah in GreatWhite, or an offer to sell his shareholding. Mehul Shah could also make a counteroffer to his brother. They have until August 31 to do so.
“After the exchange of offers by the parties, in case the parties do not agree on a mutually acceptable price, a bidding process may follow under the supervision of a person appointed by this tribunal,” the NCLT had said.
While the matter was in the NCLT, Mehul Shah filed the police case against his brother.
