Shivinder Mohan Singh withdraws petition against brother Malvinder; market reacts favourably with Religare Enterprises trading up 6%

As Shivinder Mohan Singh withdrew his petition against Malvinder Singh from the National Company Law Tribunal (NCLT), the stock market reacted favourably. Shares of Religare Enterprises s are up at 6.21 percent at Rs 45.30 at 1 PM on the Bombay Stock Exchange. Shivinder had filed a lawsuit last week against older brother Malvinder and former chief of financial services firm Religare Enterprises Sunil Godhwani, alleging “oppression and mismanagement” at their joint businesses. A two-member bench of NCLT headed by its Chairman Justice M M Kumar on Friday allowed Shivinder to withdraw his plea. However, a counsel for Religare Enterprises, which was also a respondent in the case, said there were allegations against the company of siphoning off funds by the Singh brothers.

“We want to recover that amount from them,” said senior counsel Abhinav Vashistha appearing for Religare.

On this NCLT said: ”If you wish to initiate any proceedings, move a separate application.” Shivinder on Thursday said he has decided to withdraw his petition in NCLT against Malvinder and Godhwani, as desired by his mother. [caption id=“attachment_2443490” align=“alignleft” width=“380”]  Shivinder Mohan Singh. Courtesy: IBN Live[/caption] His plea in this regard in NCLT said: “Out of respect for their mother, the parties have already started mediation and as per the request of the mediators to constructively progress the mediation, the petitioners wish to withdraw the petition, without prejudice to their rights and contentions.” Passing an interim order over Shivinder’s earlier plea, the principal bench of NCLT on 6 September directed to maintain status quo over the shareholdings and composition of RHC Holding board. As on 27 August, Malvinder and Shivinder were the promoters of Religare on behalf of PS Trust while RHC Finance and RHC Holding were the promoter groups, according to data available on bourses. The tribunal had also issued a notice to Malvinder along with Godhwani and other respondents over Shivinder’s petition alleging “oppression and mismanagement” of RHC Holding. It had also allowed both parties – Shivinder and his wife Aditi Singh – and other party Malvinder to inspect documents and take photocopies of the records of RHC Holding. Here is the full text of the petition: The Honb’le NCLT today granted my request to withdraw the petition of oppression and mismanagement I had filed against my brother Malvinder and Sunil Godhwani. I am indebted to the Court for accepting my request. The request to withdraw was made after repeated urging by my mother – and family – that Malvinder and I participate in mediation as a final attempt to resolve amicably the inter se issues between us. The decision to file the case was made with a very heavy heart and after careful deliberation. The decision to withdraw was weighed equally seriously. I did so because my primary goal remains to address and resolve the group’s issues through constructive and transparent engagement with Daiichi Sankyo and our other creditors. It is clear that my brother and I cannot do so together. To that end, I intend to use the mediation process to get to a critical decision. Namely, whether my brother or I take full responsibility for resolving the group’s issues with Daiichi Sankyo and other lenders. In the event mediation fails, I intend to reassess and start a fresh action if that is what it takes to address all issues and start afresh. To ally justifiable skepticism, let me be clear: the decision to disassociate from my brother and tread an independent path stands. Shivinder Singh September 14, 2018