Kirloskar Family dispute escalates at SAT over disclosure of family settlement agreement

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Subscribe to enjoy similar stories. MUMBAI : The ongoing dispute within the Kirloskar family has intensified, with Kirloskar Brothers Ltd (KBL) seeking intervention in the Securities Appellate Tribunal (SAT) in an appeal filed by Kirloskar Oil Engines Ltd (KOEL). At the heart of the matter is a directive from the Securities and Exchange Board of India (Sebi) requiring the disclosure of a 2009 Deed of Family Settlement (DFS), which KBL contends should be disclosed by KOEL.

The dispute centres on the disclosure and implementation of the DFS, signed in 2009 between prominent members of the Kirloskar family and affiliated business entities. The agreement outlined the distribution of ownership, management, and control of various listed and unlisted Kirloskar entities among different branches of the family. KOEL and KBL, both publicly listed companies, are directly involved in the dispute.

In June 2018, KBL filed a complaint with Sebi, accusing KOEL of failing to disclose the DFS. When Sebi rejected the complaint, KBL appealed to the SAT in 2021, but the tribunal upheld Sebi’s decision in 2022. The matter was subsequently brought before the Supreme Court, which allowed KBL to refile its complaint with Sebi, directing the regulator to review the issue.

In its affidavit before the Supreme Court, Sebi clarified that under amended regulations of the Listing Obligations and Disclosure Requirements (LODR), all listed entities must disclose agreements that impact their management and control. “In the present case, both the companies are listed entities and dealing with public investors of all sizes, hence it is paramount to make disclosures of the DFS", the regulator’s affidavit underscored. In December 2024, Sebi advised KOEL to