The Hindu : Front Page : A victory for Lodha

Online edition of India's National Newspaper
Saturday, Mar 12, 2005

Front Page

Front Page

A victory for Lodha

By Our Special Correspondent

KOLKATA, MARCH 11. The Calcutta High Court today dismissed the caveatable interest of three Birla family members in the dispute over the property of the late M.P. Birla and his wife Priyamvada. Justice Kalyan Jyoti Sengupta, however, admitted the caveatable interest of G.P. Birla while dismissing those of B.K. Birla, K.K. Birla and Yashovardhan Birla.

Mr. Justice Sengupta also directed appointment of four special officers to make an inventory of the assets of M.P. Birla and Priyamavada in Kolkata, Mumbai, New Delhi and Allahabad.

This is the first major order delivered by court since the eruption of a high voltage drama in July 2004 between India's first industrial family and their once-trusted friend and chartered accountant, Rajendra Singh Lodha, over a purported 1999 Will made by Priyamvada leaving her assets to Mr. Lodha. The Will which came to light a few days after her death in July 2004 sent the Birla clan into a huddle. They put up a united resistance against what they saw an attempt to usurp the family assets that were meant for charity.

Mr. Lodha moved the Calcutta High Court seeking the probate of the Will. This was followed by caveats filed by six Birla family members. Mr. Lodha challenged the caveatable interest of all the Birlas save two sisters of M.P. Birla. The Birla side had also sought the probate of two other Wills drawn in 1982 which they said were concurrent and irrevocable Wills of M.P. Birla and his wife. .

`Order a victory'

Both sides described today's order as a victory for them. N.G. Khaitan, Birlas' solicitor, maintained that it was an academic question as to whether the right of one Birla or several (to challenge the probate of the 1999 Will) was upheld. He said Mr. G.P Birla was the executor of the 1982 Will of M.P. Birla. "We had argued all along that the 1999 Will has to be challenged — our aim is to give it to charity," Mr. Khaitan said adding that the Birlas might go in for appeal after going through the order to include the other executors of the 1982 Will.

Debanjan Mondal of Fox & Mandal, Lodha's solicitors, said their client was happy at the turn of events, as three of the four caveat petitions have been dismissed. Moreover, he said, the court has also rejected the appeal of the Birlas to discharge the caveat petition of Mr. Lodha in respect of the "alleged Will of 1982". He said it was not clear whether both the probate applications of 1982 and 1999 would be heard simultaneously. On the issue of special officers, he said the Lodhas had opposed the Birlas' petition on appointment of a receiver and they had agreed in principle on the appointment of a special officer.

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