NEW DELHI, April 12: The Company Law Board (CLB) has relieved shaving major Gillette International from being impleaded in the family feud of Harbanslal Malhotra and sons (HLM), manafacturer of topaz blades. CLB in its interim order stated, "With Gillette having no current or pending agreement regarding supply of technology to Harbanslal Malhotra as such the ground on which applicant (Gillette) be impleaded no longer exist."The shaving major was involved in a suit following R K Malhotra, shareholder in HLM, alleging Gillete was supplying obsolete technology to the company. Gillete International had planned to have a maximum of 49 per cent stake in HLM along with the supply of technology to manufacture blades in 1995.
In this regard the FIPB had also approved Gillette's proposal. During that period R K Malhotra, one of the three brothers owing 33 per cent stake in the company, objected to the tie-up.
Following the family trouble and expiry of FIPB permission in October last for investment in thecompany, Gillette decided to move out of the tie-up.CLB principal bench stated, "As Gillette has not seeked further extension from FIPB along with no commitment or interest in HLM, there is no need for it to be impleaded." The CLB decided to relieve Gillette in the case following the shaving major filing an application to the board and making clear its intention in the case.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
