Delhi High Court clears way for Bina Modi to vote in Godfrey Philips AGM on September 6

Although the court refused to remove Bina as the managing trustee of the trust, Justice Navin Chawla stipulated that Bina shall henceforth file an affidavit on a half-yearly basis, disclosing all remuneration and other benefits received by her in her position as the managing director of Godfrey Philips.

Ruchir submitted before the court that by removing him and his father Lalit from the position of directors of the companies and refusing to give the accounts and redistribute the income from the trust fund among the beneficiaries, Bina failed to comply with the mandate of the trust deed and was also in violation of the Trust Act.

The court held that Bina drawing a remuneration as the managing director of Godfrey Philips could only lead to a claim of accounts by Ruchir and not a claim for her removal as managing trustee of the trust or as the company’s MD.

Adding one more item on the agenda of the AGM, the court further clarified, “In case a direction is passed, at any stage of this suit, that her appointment as a managing director of GPIL was against the terms of the Trust Deed or the Trust Act, she shall immediately tender her resignation from the said position and not claim any equity only because of the dismissal of the present application. This shall also be informed during the AGM of GPIL, which is scheduled to be held on 06.09.2024.”

Ruchir’s grandfather and Bina’s husband K K Modi created a trust involving his family members and children, and as per the trust deed, the trust was meant to ensure that he takes care of the family-controlled businesses, followed by his wife upon his demise and his children after that. If the children disagreed, the businesses were to be sold off and the trust dissolved. Following K K Modi’s demise in November 2019, Bina took charge of the trust as the managing trustee and the managing director of Godfrey Philips. The trust holds 44 per cent shares in Godfrey Philips.