Godfrey Phillips row: Delhi court adds fresh twist to dispute between Samir and Bina Modi

Addressing the row surrounding Samir Modi's role as a director at Godfrey Phillips India, a Delhi court said Modi is not entitled to remain perpetually in his position without following the due process of reappointment as prescribed by law. 

The decision overturns an interim protection granted to him in June, which temporarily prevented his removal from the company's board.

The court said the nomination and remuneration committee of Godfrey Phillips must adhere to the procedures outlined in the Companies Act when considering Samir Modi's reappointment. 

This directive comes as a blow to Modi, who has accused his mother, Bina, and other directors of conspiring to oust him from the board. He also alleged that he was physically assaulted by his mother's personal security officer during a board meeting on May 30.

The court has also given Godfrey Phillips the autonomy to proceed with its planned exit from the retail business under the 24Seven brand. 

This decision comes despite Samir Modi's demands to prevent the company from abandoning the retail venture. The tobacco giant has been at the center of an inheritance feud involving the successors of the late KK Modi.

Samir and his brother Lalit Modi, the former IPL chief, are embroiled in a bitter dispute with their mother over the distribution of the family inheritance. They contend that Bina is not adhering to the trust deed laid down by their late father. Bina, currently the chairperson and managing director of Godfrey Phillips, could recommend Samir Modi's appointment to the board in September, but the final decision rests with the company's nomination and remuneration committee.

The court's ruling also vacates an ex-parte injunction that had previously halted Godfrey Phillips' exit from the retail business, a move announced by the company in April 2024.