6 November 2009

Jamal Hirani, the former Chief Executive Officer of fast food chain 'TiffinBites' has lost his case for unfair dismissal against the new owners of the business, V8 Gourmet Group - now part owned by Bollywood actress, Shilpa Shetty. Hirani, who co-founded Tiffinbites in 2002, had claimed £1.5million in compensation at the Watford employment tribunal and said that he planned to launch a further High Court action claiming for the equivalent value of his 30% in the former business. Hirani was reported in the press as having claimed that he had been forced out of the businesses to make way for Shilpa Shetty and her fiancee, Raj Kundra who purchased a 33% stake in the new business in August 2009.

The Tribunal found Mr.Hirani had not been constructively dismissed and should have only the modest holiday pay which Shilpa’s Restaurant Group had already agreed. Apart from a very modest holiday upgrade payment of £1,323 (which V8G had previosuly agreed) all other claims by Hirani were rejected by the Tribunal. The Tribunal decided that the employers had “reasonable and proper cause for their actions” concerning the suspension of Mr.Hirani (and all related issues) and therefore Mr.Hirani was not constructively dismissed.

Jamal Hirani was a Director and the Chief Executive Officer of Gourmet Restaurants Limited. In late 2008, it became apparent the company was in financial difficulties. In December 2008, the Directors suspended Mr. Hirani pending an independent investigation of the cause of the difficulties. In January 2009, the company’s funders, ICICI Bank, withdrew their support and prepared to put the company into pre-packaged Administration.

V8 Gourmet Group were the successful purchasers of the Bombay Bicycle Club, Vama and Tiffinbites businesses of the old insolvent company from the Administrators. Under the employment protection regulations, V8G inherited the employees, including Mr. Hirani. In August 2009, Bollywood actress Shilpa Shetty and her fiancée Raj Kundra invested £6 million for a 33% stake in the new business. Shetty and Executive Chef Andy Varma announced plans to launch a range of convenience foods under the 'Gourmet Creations' brand name.

Managing Director, Arjun Varma said, "We are delighted to hear the verdict, which vindicates Shilpa, V8 Gourmet Group and my brother Andy & myself. Truth and Justice have prevailed and we are very pleased with the outcome." Shilpa Shetty commented, "‘I am pleased with the Tribunal’s decision which was never indoubt in Raj’s and my mind".