CLB dismisses Mansukhani plea challenging withdrawal as MD

The Company Law Board (CLB) has passed a significant judgement on the sibling spat between the Mansukhani brothers, promoters of leading pipe maker Man Industries. CNBC-TV18's Ashwin Mohan reports.

CLB has held that Man Industries' board did indeed have the power to either confer or withdraw managerial powers.
The question of law before the CLB was whether the board of Man Industries had to power to withdraw the managerial powers of its director, in this case the younger brother Jagdish Mansukhani. The recent judgement, which went against the younger brother, is definitely a turning point in the sibling spat between the promoter brothers.
In a meeting held on May 19, 2011, Man Industries board decided to withdraw the managerial powers of Jagdish Mansukhani on allegations of alleged insider trading. The board alleged that Jagdish Mansukhani