Have Shilpa, Raj Kundra and the Dutts called a truce?

Not long ago were there rumours about business partners Sanjay Dutt and Raj Kundra not seeing eye-to-eye, leading to their respective wives too keeping each other at an arm's length.

Sanjay Dutt with his twins Iqra and Shahraan

However, at the birthday party of Dutt's twins on Monday night, all differences seemed to have melted away and the families looked happy in each other's company. Onlookers were pleasantly surprised to see Kundra and his wife Shilpa Shetty attend the party along with their son, Viaan, at the Dutt residence. According to sources, Dutt and Kundra had a fallout over sponsorship issues of the martial arts tournament they run together.

Shilpa Shetty, Raj Kundra with son Viaan

Kundra had a spat with Balaji Rao, the managing director of a food product brand that was the official partner at the tournie. Rao, who is Dutt's good friend, had allegedly refused to cough up the sponsorship amount once the championship closed for the season.

Says an insider, "Dutt's twins Shahraan and Iqra turned 3. Sanjay is on a time-out from jail and he enjoyed spending time with the kids and his close friends, Raj and Shilpa." The birthday party apparently had the Smurfs theme.

A common friend of the two couples says, "Maanayata and Shilpa were the best of friends and even hung out with each other a lot. But after the clash of interests between their husbands, they started avoiding each other." Shilpa says, "Manya and Sanju are very dear to me and Raj. There was no question of not going."