Godfrey Phillips India Resumes Plan To Exit 24Seven Retail After Court Ruling
The District Judge of South-East District at Saket Court, New Delhi, has overturned the injunction, allowing the company to move forward with its exit plan.
Cigarette maker Godfrey Phillips India Ltd. announced on Wednesday that it will proceed with its plan to exit the retail business under the ‘24Seven’ brand, following the lifting of an interim injunction by a district court in the capital.
The initial injunction, issued on June 27 by a city court had blocked the company’s move to divest the retail business, based on a petition filed by Executive Director Samir Kumaar Modi.
The District Judge of South-East District at Saket Court, New Delhi, has now overturned the injunction, allowing the company to move forward with its exit plan, according to a regulatory filing.
Consequently, the company is taking steps in accordance with the decision of the Board of Directors on April 12, it said.
The company's board on April 12 approved exiting from the retail business division operated under 24Seven, subject to completion of the necessary formalities.
However, an ex-parte ad interim injunction order was passed by the District Judge, South-East District, Saket Court, New Delhi on June 27 directing the company to maintain the status quo with regard to the retail business, Godfrey Phillips India said.
The next day, legal counsel for Samir Kumaar Modi had served a copy of the order to the company, it added.
Godfrey Phillips India said revenue from operations from the retail business division for FY24 was Rs 403 crore, or 7.6% of its total revenue from operations. The retail business division had a negative net worth as of March 31, 2024.
The company claimed after due consideration of the stakeholders' feedback, long-term performance of the division since inception, prevailing market conditions of the retail sector and long-term business strategy of the company, the board had decided to exit from the retail business.
Samir Modi has been involved in a boardroom tussle with his mother Bina Modi and even accused the latter of orchestrating an attack on him during the company's board meeting.
He had filed a complaint before the Delhi Police alleging that he was stopped from participating in the board meeting of Godfrey Phillips India scheduled on May 30 by Bina Modi's PSO and was "grievously injured" after being assaulted.
Godfrey Phillips India is the flagship company of Modi Enterprises. It makes popular cigarette brands like Four Square, Red and White, Cavanders, Tipper and North Pole.
It also manufactures and distributes brand Marlboro under a licence agreement with Philip Morris.
(With Inputs From PTI)
