United Spirits and Allied Blenders & Distillers settle dispute on Officer's Choice

MUMBAI: After years of acrimony, Vijay Mallya's United Spirits (USL) and Kishore Chhabria-led Allied Blenders & Distillers (ABD) on Monday agreed to settle their dispute over the ownership of the largest selling whisky brand in the world, Officer's Choice, out of court, according to people familiar with the development.

USL will receive Rs 8 crore from Allied Blenders & Distillers (ABD) - that owns Officer's Choice - in return for withdrawing all court cases claiming right over the whisky, which is the flagship brand of ABD, said people close to ABD.

"Now that all disputes are over, ABD and Officer's Choice are poised for growth," said Kishore Chhabria, chairman of ABD. A spokesman for USL declined to comment.

The dispute has its origins in 2001 when Kishore Chhabria and his elder brother Manu smoked the peace pipe and withdrew all the 140 legal cases against each other. However, senior Chhabria, for reasons not clear, did not withdraw one case.

The one case that was not withdrawn was over the ownership of Officer's Choice and this is the case that reemerged before the Kolkata High Court a decade later when Mallya decided to stake claim via a court case. Mallya had acquired Shaw Wallace & Co in 2005 from the Manu Chhabria group which had filed a case in 1992 claiming ownership of BDA and its brand Officer's Choice whisky.

Mallya and Chhabria had a deal in the past by which Mallya agreed to part with Offcier's Choice whisky and 130 crore in cash in return for full control of Herbertsons in which Chhabria had a substantial stake.