Calcutta High Court stays Jumbo's sale of shares to Mallya

Kolkata: Shaw Wallace & Co's deal to sell its stake to Vijay Mallya's UB Group on Monday was stayed by Justice Kalyan Jyoti Sengupta of the Calcutta High Court on Tuesday. Justice Sengupta passed an interim order directing Shaw Wallace to maintain status-quo with regard to the usage of the brand name and trade mark. This order was passed because Shaw Wallace is yet to complete the terms of the settlement with one R R Modi.

In the proposed terms of settlement, Shaw Wallace was supposed to transfer two flats at Worli, in South Mumbai to R R Modi as part payment in a settlement amount of Rs57 crore. It was proposed in the settlement that the residual amount was to be paid to Modi after the sale of the beer business of Shaw Wallace within seven days.

Shaw Wallace is expected to file its reply before the appeal court on Wednesday.