'Spice wars' settled for £8 million but family remain divided

Victorious sisters Chitralekha Mehta and Anila Shast with their brother Yogesh Patak
13 April 2012

The "spice wars" which bitterly divided a family finally ended when two sisters secured a multi-million pound settlement from their brother over the Patak curry empire.

Sisters Chitralekha Mehta and Anila Shastri were celebrating after walking away with an estimated £8 million payout after a five-year battle for their share in the famous Patak family firm.

But their victory was a muted one - for the row has led to deep rifts and recriminations in the family with the two women labelled "wicked, greedy and jealous" by their mother, and their brother Kirit branded a "liar."

The lengthy High Court case heaped embarrassment on the family which turned the Patak name into a £75 million global brand by selling Indian sauces and pickles in 40 countries.

It also attracted huge controversy after the women ran up a legal aid bill of more than £1.5 million to sue their family for shares in the company started by their late father Laxmishankar Pathak.

He had granted them shares in the company on his death, which they later gave to their mother.

But she then handed them to their brother who, in turn, refused to give them back to the sisters when the firm became succesful.

Mrs Mehta, 58, said before agreeing the settlement: "I had to bring this case because shares were wrongly taken from us. Our case was about getting them back."

"It need not have gone to court and could have been settled. Both Anila and I never thought it would come to court with so much vengeance. It is not what I wanted at all."

"I think Kirit let it go this far and I hold him totally responsible for that. We were a very joint, united family as young siblings but I saw in Kirit's eyes that he was burning up with bitterness."

"Our mother has been manipulated by him but I hope one day she will embrace us again."

The sisters are thought to have been awarded £4 million each in shares and compensation.

In a hearing before Mr Justice Evans-Lombe, the sisters' lawyer Constance Mahoney said: "The matter has now been settled. The agreement is confidential."

But while the settlement has been agreed, insiders said it would take much longer for the bitter family divisions to heal.

The spice wars erupted after firm founder Mr Pathak, who fled to Britain from Kenya in 1955, handed over control to his four sons but gifted 1,250 shares each to his two daughters in 1974.

In 1989 Mrs Mehta and Mrs Shastri, 54, gave their shares - then worth five per cent of the company - to their mother Shantagauray for safekeeping.

Instead Mrs Pathak, now 80, gave them all to her son Kirit, who was then mounting a £6 million takeover of the firm which produces curry sauces, pickles and sweets.

As chairman and chief executive and together with his wife Meena, the 53-year-old raised Patak's turnover from £3.4 million to £75 million a year and expanded the company until it was supplying 90 per cent of the country's 7,500 Indian restaurants.

His mother claimed she did not hand back the assets to her daughters because her culture forbade it and she was no longer responsible for them after they married.

Kirit Pathak, whose father died in 1997, accused his sisters of opportunism and said they waited until the company was successful before launching their legal action in 2001.

In April 2004 the case appeared to have been resolved with Mr Pathak - who together with his wife has been awarded an OBE - preparing to hand over 12.5 per cent of the company shares.

But Mrs Mehta, who now lives in Madras in India and Mrs Shastri, of Wembley, northwest London, said he and their mother reneged on the deal, and so returned to court yesterday.

She said: "I think my mother will realise Kirit has manipulated her and will repent. My door is wide open for her to come and talk to me at any time."

The hearing was expected to last five weeks, which could have doubled the legal aid bill, but reached a swift conclusion.

Mr Pathak's legal bill, which he is funding himself, is thought to have exceeded £1 million.

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