Feb. 23, 2004, LONDON: A family
feud at one of the wealthiest Indian food dynasties in Britain
was played out at the High Court as two sisters claimed they were
excluded from their inheritance because they were women.
Chitralekha Mehta and Anila Shastri remember working long hours
beside their four brothers as they helped build their father's
business -- a line of Indian chutneys, pickles and spices -- into
a British powerhouse.
The daughters, initially were granted a stake in the company,
as were their brothers. But later, they surrendered their shares
to their mother -- expecting to get them back. They are fighting
for what they say is their fair share of the family business,
which brought in nearly $75 million in 2002. "All I am after
is what's right and justifiably mine," Ms. Mehta, 56 years
old, testified recently in the Royal Courts of Justice. "As
a girl, as a daughter, as a woman, I don't think I can be treated
like this."
Shantagaury Pathak, 77 year, old mother, contends the shares
never really belonged to the daughters in the first place. Under
Hindu tradition, she says in her witness statement, "the
daughters of the family are never given a part of the family business."
Her daughters, she says, "left our business, our home and
our family" when they married and went to live with their
husbands. Their father, Laxmishanker Pathak, the family patriarch
and founder of Patak foods, died in 1997. (Mr. Pathak dropped
the 'h' from the family name in naming his business.)
After World War II, he was one of tens of thousands of Indians
who came to Britain to fill a labor shortage. In the years that
followed, Indian food began to catch on with the British public
at large. Indian eateries became the most common restaurants nationwide,
accounting for some 9,000 restaurants and about two-thirds of
all dining out. Today, Indian food has become as much a British
staple as steak-and-kidney pie or bangers and mash.
In 1970 , when the family patriarch sought to parcel out his
shares in the company to avoid potential tax liabilities in India.
In 1974, connected to that effort, each of his six children received
1,250 previously unissued shares, initially representing 12.5
percent of the company but now only 5 percent. The total share
grant of 2,500 shares to the two daughters was made by the then-company's
secretary, the patriarch's son Rajoo. Rajoo issued shares to himself
and his three brothers "because he believed that the four
sons would eventually own the company with their parents."
It says that Rajoo issued shares to the two daughters only to
hold on behalf of their parents.
In 1989,the daughters signed over their shares to their mother,
who later passed them on to her eldest son, Kirit, who is now
51. The daughters claim they entrusted the shares to their mother
after being told by their father of a "serious tax investigation"
into the company, and that they would later get the shares back.
A court statement from the defense said there had been a tax investigation,
but it had been "virtually concluded" by October 1988,
and was unrelated to any reason why the shares were transferred.
When the shares weren't returned, Ms. Shastri sued her mother,
Kirit and Worldwing Investments Ltd., the parent company of Patak
Foods, in Britain's High Court. Ms. Mehta, known as "Chick,"
sued only Kirit and Worldwing. Kirit declined a request to be
interviewed.
Shantagaury Pathak, mother testified, charged her daughters with
making a "wicked attempt" motivated by "greed,
jealousy and malice in their hearts to get money that does not
belong to them." She cited the "Hindu culture"
followed by her and her husband "till his very last breath."
The widow testified last week that as matriarch she was "traditionally
the goddess of wealth" of her household, and that is why
the shares were entrusted to her.
Sisters argue that they had worked very hard to help build up
the company and showed disdain for their mother's argument that
daughters and business don't mix. "I served Patak ... and
in turn the whole family, with all my heart and soul, every time
putting their interests above those of my husband's family,"
Ms. Mehta said in a witness statement. Hindu inheritance traditions
shouldn't apply to an Anglicized family in modern Britain.
About Pathak Family:
Welcome to Patak's Foods, the world's leading producer of authentic
Indian food for the retail and foodservice markets.
Established in England in 1956, Patak's has grown to become an
internationally successful brand. Our award-winning cooking sauces,
curry pastes, chutneys, pickles and pappadums are now distributed
to more than 45 countries worldwide, including the UK, Europe,
Japan, Australia, New Zealand, the United States, and Canada.
At Patak's, we're passionate about Indian food, and want to share
our knowledge and passion with you.
Patak's Foods, long a household name in the UK, is fast becoming
recognized around the world for creating a line of authentic Indian
food that is quick and easy to prepare. Our popular cooking sauces,
curry pastes, chutneys, pickles, vegetable curries and pappadums
make it easy for food lovers everywhere to prepare authentic Indian
dishes at home in less than 35 minutes. Our curry pastes are even
sold in 2.5 kg containers in the UK where Patak's is served in
more than 90% of Britain's 10,000 Indian restaurants.
Patak's (pa-taks) was founded in 1956 by L.G. Pathak, father
of the present chairman, Kirit Pathak, and is still entirely family-owned.
The family dropped the 'h' from the company name, thinking it
would be easier for Europeans to pronounce. Originally from East
Africa, Mr. Pathak arrived in England with £5 in his pocket.
Good jobs were scarce, so he and his wife decided to do what they
knew best - preparing traditional Indian food. They began by making
fresh samosas and selling them from their home until they raised
enough money to open their first shop. They soon expanded to sell
pickles, chutneys and other hard to find food products imported
from India.
Today, Patak's has more than 500 employees and its products are
distributed internationally to more than 45 countries, including
Canada, Japan, Australia, New Zealand, Europe and the United States.
The company recently introduced new packaging aimed at attracting
North American consumers to the growing ethnic food category.
The bold new colours and glass jars add an eye-catching, more
modern look to the Patak's line. Pathak's foods sells its products
around the world and has a turnover of more than US $ 92 million
a year
