Atlas Group gets favorable HC order for Group Division

The Hon'ble Delhi High Court has passed an order upholding the valuation report prepared by leading consultancy firm Ernst & Young Pvt Ltd to divide the Group assets amicably among the three Kapur families, who jointly own the Rs 407 crore Atlas Cycles (Haryana) Ltd.

In his judgement, Hon'ble Justice Madan. B. Lokur also vacated the stay order on implementation of the report and the family can go ahead with the consultancy major's suggestion of asset division by drawing lots amongst the three families. He stated that the valuation was final and binding on all the parties and due respect should be given to the family settlement arrived at by all the members. He further added that since the parties had agreed to be bound by the valuation, they should accept the report readily. He also said that the courts should go slow in interfering with such matters.

The Hon'ble Delhi High Court has also imposed a cost of Rs 1.10 lakh on the plaintiffs for filing frivolous cases. The suit filed by Mr Arun Kapur and his sons Akshay Kapur and Ashwat Kapur had sought permanent injunction to restrain the sale or disposal of the group's assets and stay on the implementation of the valuation report of the Kapur family group. The plaintiffs had alleged that they were deliberately kept out of the assets' valuation process by E&Y in order to dispose of the property illegally. Arun Kapur who was ousted from the management and affairs of the Malanpur unit of Atlas Cycles (Haryana) Ltd. in March 2001 allegedly for siphoning off around Rs 10.45 crore had also filed an appeal against the arbitrator's award directing to deposit Rs. 5 crore.