Kirloskar Brothers Falls 1.2% After Supreme Court Orders Arbitration

The court appointed Justice Nitin Madhukar Jamdar, former Chief Justice of the Kerala High Court, as arbitrator for Kirloskar Brothers. It appointed Justice K.R. Shriram, former Chief Justice of the Madras and Rajastan High Courts, on behalf of the contesting respondents. The two nominee arbitrators must jointly appoint a presiding arbitrator within four weeks. Pune is the seat of arbitration.

The court left open all questions of arbitrability, including whether non-signatories to the DFS are bound by its arbitration clause. It said the tribunal should decide those as a preliminary issue.

The company said the finantial impact of the proceedings cannot be presently asertained. Despite Tuesday's dip, the stock remains up nearly 18% year-to-date and has delivered over 400% returns in five years. The arbitration process is likely to take months, adding a layer of uncertainty to the company's governance outlook.