Real judgements, distilled

Legal Case Shots

Court judgements broken down into the case type, how the decision played out, and the lesson worth remembering, with the full judgement available as a PDF.

Company & Insolvency LawSupreme Court of India

Farhat Sheikh v. Javed Zaki & Ors.

Civil Appeal · Neutral citation not assigned (Civil Appeal Nos. 7131-7132 of 2010)Decided 20 Apr 2017
Civil Appeal Nos. 7131-7132 of 2010
Justice Kurian Joseph · Justice R. Banumathi

Background

Two sets of connected civil appeals, pending for nearly a decade, involved a family dispute over control and management of two family-owned companies, Detinners Pvt. Ltd. and Esemen Metalo Chemicals Pvt. Ltd., which had been under the control of one Sk. Md. Naqi before his death. After his death, his descendants (the parties to the appeal) contested control of the companies and their properties. The Supreme Court had earlier appointed a senior counsel, Mr. R. Basant, to mediate between the family members.

Decision Breakdown

Through the mediation efforts of Mr. Basant (assisted by Mr. A. Karthik and Mr. D.N. Mitra), the family members reached a comprehensive settlement, reduced to signed "Family Settlement Terms" covering equitable distribution of the family's realisable assets. The Court allowed applications to implead additional family members and the company as parties, took the settlement terms on record, and disposed of both sets of appeals in terms of that settlement, directing that any future dispute about compliance with specific clauses of the settlement must be brought back only to the Supreme Court itself. The Court also noted that the mediating counsel declined any fee, and the parties agreed instead to make a contribution to the Tata Memorial Cancer Hospital.

Lesson Learnt

Long-running family/business disputes can be resolved through court-facilitated mediation even after years of litigation, and the Supreme Court can finally dispose of appeals purely on the basis of a negotiated settlement, while retaining exclusive jurisdiction over future disputes about that settlement's enforcement.

Farhat Sheikh v. Javed Zaki & Ors. – Legal Case Shots | LegalAware