Supreme Court Refers Biological E Case for Mediation

The high court had constituted an adhoc board to run the company and ruled that they should take decisions by consensus.

Published: 21st May 2015 06:06 AM  |   Last Updated: 21st May 2015 08:05 AM   |  A+A-


HYDERABAD: A two-judge bench of the Supreme Court has decided to refer the Biological E Limited case for mediation after Dr Renuka Datla and her three daughters filed an appeal against a high court order directing them to work together.

The high court had constituted an adhoc board, comprising Dr Renuka and her daughters, to run the company and ruled that they should take decisions by consensus. Dr Renuka has been locked in a legal battle after her husband’s death for control of the company.

The apex court bench, comprising Justice V Gopala Gowda and Justice C Nagappan, suggested names of two former judges of the court Justice PV Reddy and Justice R V Raveendran to mediate between the mother and her daughters. 

The bench observed, “having regard to the relationship between the parties i.e. the daughters and the mother respectively, in relation to a public limited company, where life saving drugs are manufactured and more than 2000 employees are working, we deem it appropriate to refer the matter for mediation.”

As both the parties accepted its suggestion, the bench directed the registry to send a letter seeking consent of both the former judges to conduct mediation. The bench requested the mediators to mediate between the parties as expeditiously as possible but not later than six weeks from the date of receipt of a copy of its order. It requested them to their report for perusal of the court.

The bench said in case any dispute arises in the functioning of the company during the  period of mediation, both parties could approach the mediators for resolution of the same.

“It is needless to mention that the mediators may act independently and settle the matter uninfluenced by the order of the high court. The place of mediation and terms and conditions of the mediation may be decided by the mediators,” it said.  While adjourning the case to the second week of July, the bench directed both the parties to cooperate with the mediators.

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