Kenya Today

Kenya News, analysis & in-depth reports

Big win for Mohan Galot as Court kicks out thugs from Manchester Outfitters Ltd

Big win for Mohan Galot as Court kicks out thugs from Manchester Outfitters Ltd

55 Comments

Big win for Mohan Galot as Court kicks out thugs from Manchester Outfitters Ltd

Manchester Outfitters Ltd- 14 years ago, billionaire Mohan Galot went to court to regain control of his company where his nephews had stolen billions of shillings in revenue. It was sweet justice yesterday when the High Court settled the vicious battle for the control of garment maker Manchester Outfitters Ltd (MOL) by declaring Mohan Galot as the legitimate director.

Mohan and his nephew Pravin Galot have been battling in court for the control of the company incorporated on November 3, 1977.

But Justices Lilian Mutende, Chacha Mwita and Mugure Thande on Thursday found that the director of Manchester Outfitters Ltd is Mohanlal Pusharam Galot who is also the governing director.

Mohan testified in court that Manchester Outfitters was established in 1954 by his father the late Lachman Pusharam Galot as a sole proprietorship to carry on the business of uniform production and distribution.

It was later converted into a 50/50 partnership between Pusharam and Mohan.

They employed Mohans brothers, Lalchand Pusharam Galot, Ganeshlal Pusharam Galot and Sohanlal Pusharam Galot.

When Pusharam died on November 12, 1973, he left a will dated October 27, 1973, in which he bequeathed his four sons a quarter of his 50 per cent interest in the partnership.

As a result, Mohan’s share of the partnership increased to 62 per cent while each of his brothers got 12.5 per cent of the business.

The issues for determination according to the bench were who the shareholders of MOL are, and who are the directors of MOL.

They relied on the company’s articles of association, specifically article 10 which indicated that once Lalchand died, Mohan was to automatically and without any meeting of shareholders or directors assume the position of governing director of MOL.

He was to hold office until his death or vacate office under Article 13.

As the new governing director, the Judges said Mohan could exercise all the power and authority of the position.

“One of the powers he could exercise was the removal at any time of a director of MOL, howsoever appointed, other than a permanent director,”

Judges said it is not in dispute that Pravin was appointed managing director but at the same time indicated no evidence was placed before the court to demonstrate that Pravin or Rajesh Galot were ever permanent directors in MOL.

“The claim by the defendants that they were permanent directors is therefore without any basis,” the judges ruled.

During the hearing, Pravin and Rajesh admitted that their father Ganeshlal, Mohan, Sohanlal and Lalchand are brothers and the sons of Pusharam.

According to Pravin, he was appointed Managing Director of MOL in 1991.

Big win for Mohan Galot as Court kicks out thugs from Manchester Outfitters Ltd

His case was that there was no board resolution removing him from an office he had held for 31 years.

But the Judges in their ruling found that the removal of Pravin, Rajesh and Ganeshlal as directors of MOL by Mohan in 2007, was an exercise of the power conferred upon him as governing director by Article 10.

“In the circumstances, the conclusion we come to on this issue is that Pravin and Rajesh ceased to be directors of MOL on 14 March 2007 while Ganeshlal ceased to be a director on June 7, 2007,” they said

“It follows therefore that Mohan is the only remaining director of MOL,” they added.

The three-judge bench also cited a registrar record which contains notification of change of directors and secretaries dated March 17, 2007 showing that Pravin and Rajesh ceased to be managing director and executive director respectively, with effect from March 14, 2007.

They subsequently found and held that the shareholders of Manchester Outfitters Limited are Lalchand Pusharam Galot with 1 management share and 349 ordinary shares.

Mohanlal Pusharam Galot with 1 management share and 349 ordinary shares. Galot Limited with 700 ordinary shares and the director is Mohan.

Following the court’s ruling, Mohan in a notice to its employees welcomed the decision saying “I have been reaffirmed as not only the sole director but also its chairman and Governing Director of MOL.”

He assured the staff members that their employment remains secure amidst the changes which will be made.

“We appeal for your patience and cooperation during this period of transition,” read the notice.

Comments

  1. Escape the hustle and bustle of city life and unwind in the serene ambiance of naran valley. With its picturesque vistas and peaceful atmosphere, Naran Valley is the ideal destination for those seeking relaxation and rejuvenation amidst nature's splendor.

    Reply

  2. Nestled between a bustling kyrgyzstan city and modern conveniences, Osh University has a rich history. Our university, which is situated in a multicultural area, provides a distinctive learning atmosphere that enhances the educational experience for students. Amidst the alluring beauty of Kyrgyzstan's capital, put your trust in Osh University to deliver an outstanding education.

    Reply

  3. Find top-notch sporting goods at Uniswift.ae, which is conveniently close to indoor soccer dubai. Whether you're a weekend warrior or a professional athlete, we offer everything you need to be successful in your sport. Buy now to set yourself up for success!

    Reply

  49. I’m nnot that much of a intrernet reader to bbe honest but yiur bloigs really nice, keep itt up!

    I’ll ggo aahead aand boookmark your websit tto come bzck dolwn thhe road.
    Manyy thanks

    Reply

  53. I’m impressed, I must say. Sedom doo I encouhnter a blpog that’s
    botrh eqqually educatie annd interesting, and llet me tel you, you
    have hiit thhe nail oon the head. The probem is something which not enogh people aree speaking intelligeently about.
    Now i’m very happy I sumbled across thbis iin my
    searhh ffor ssomething regzrding this.

    Reply

  55. Hello, Neat post. Thee is a problem with yoour weebsite iin web explorer,
    mmay test this? IE nonwtheless is the marketplace chidf and a large ppart off
    people will misss ylur magnificent writig becwuse off this problem.

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

7 − two =

Disclaimer

Privacy and cookies