Sources say that as both Mallya and Kishore Chhabria are likely to be asked by the Sebi to make an open offer to the shareholders of the company, a strong managing director will help the company to prevent any takeover bid made by Chhabria. Mallya and his nominees command majority on the board of directors. Lalla will continue to serve the board as a director.

The promoters' fate is now in Sebi's court which is studying various legal reports submitted to it by both bidders. While Chhabria has roped in Attorney General Soli Sorabjee's legal opinion tosupport his acquisition, Mallya has taken a counter-opinion of noted lawyer K Parasaran on the takeover code.

Sebi officials say as a lot of grey areas has crept into the way acquisition of shares have been made by both parties, it will take them some time to come into a decision considering the opinions and counter-opinions filed by both parties. Both Sorabjee and Parasaran's opinions have been filed with the Sebi and a decision is expected soon, officials add.

Faced with legal opinions from country's best legal luminaries supporting each side, Sebi sources say they have to take a decision based on a presumption that this case will drag on in the Indian courts for a long time.

Chhabria had acquired 26 per cent in Herbertsons Ltd through a negotiated deal with the UB group baron Mallya in quid pro quo of bringing BDA Ltd - makers of Officer's Choice whiskey -- in the UB fold. Subsequently, Chhabria raised his stake gradually to 48 per cent through three transactions. Herbertsons, on orders from Mallya,has refused transfer part of this stake to Chhabria's companies. A close associate of Mallya has even moved the Mumbai High Court against the acquisition of shares by Chhabria.